GBP/USD Price, Charts and Analysis
- GDP contracts in August but rolling 3-month growth beats expectations.
- Brexit negotiations ongoing as PM Johnson’s meets Taoiseach Varadkar.
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UK growth contracted in August, according to the latest Office for National Statistics (ONS) data but rolling 3-month GDP beat market expectations. GDP fell by 0.1% in August, compared to a flat reading in July, while 3m/3m GDP rose by 0.3% compared to expectations, and a prior month’s reading of 0.1%. The positive performance was aided by tv and film production boosting the services sector, while manufacturing performance remains weak, according to the ONS. The 3m/3m index of services rose by 0.4%, beating expectations and a prior month’s outturn of 0.2%.
GBPUSD nudged higher on the release before paring gains ahead of today’s Brexit meeting between UK PM Johnson and Irish Taoiseach Varadkar at mid-day. EU members and officials have been saying that this weekend is crunch time to see if there is the basis of a deal on the table ahead of the EU members meeting on October 17-18. Johnson’s latest offer has not found any favor with the EU, while yesterday’s rumor of a time-limited NI backstop offer by the EU has been refuted by the EU and rejected by the UK.
GBP/USD Five Minute Price Chart (October 10, 2019)
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