Forex: NIESR Estimates U.K. GDP Growth unchanged in November; GBP/USD Mixed
THE TAKEAWAY: [U.K. NIESR GDP Growth unchanged at 0.1%] > [Adding signs of slow recovery of U.K. economy] > [GBP/USD Neutral]
The latest release from the National Institute of Economic and Social Research (NIESR) estimated that U.K.’s Gross Domestic Product rose 0.1 percent in November, following a downwardly revision to 0.1 percent gain in October from 0.5 percent initially reported. The monthly figure fell slightly to 102.6 from 102.8 in previous month, while the reading of three months ending in November remained unchanged at 102.7.
According to NIESR report, Britain’s economy barely grew in the three months through November. Growth is expected to return in 2013, but will not be strong enough to lower the unemployment rate or to fulfill the U.K.’s negative output gap. Britain’s economy is likely to remain at slow pace amid concern of continuing shrinking in manufacturing and construction.
The British Pound remained little change against the U.S. dollar after the release of NIESR’s estimates. At the time of this report was written, the GBP/USD pair was trading at $1.6024.
--- Written by Renee Mu, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.