Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
British Pound (GBP) Latest: GBP/USD Fails to Benefit From UK GDP Data

British Pound (GBP) Latest: GBP/USD Fails to Benefit From UK GDP Data

Martin Essex, MSTA,

GBP price, news and analysis:

  • Data for UK GDP in the fourth quarter were revised upwards, and that might have been expected to lift GBP/USD even though the figures are now dated.
  • The fact that it didn’t suggests near-term losses for the pair, particularly as the yield on the 10-year UK Government bond continues to rise and that has not helped GBP/USD either.
Advertisement

GBP/USD may weaken near term

UK GDP data for the final quarter of last year have been revised upwards but that failed to lift GBP/USD early Wednesday. For sure, the figures are now out of date but Sterling’s failure to respond still suggests it could weaken a tad further near-term, perhaps to the 1.37 level.

GBP/USD Price Chart, Daily Timeframe (December 4, 2020 – March 31, 2021)

Latest GBP/USD price chart.

Source: Investing.com (You can click on it for a larger image)

How to Trade GBP/USD
How to Trade GBP/USD
Recommended by Martin Essex, MSTA
How to Trade GBP/USD
Get My Guide

Looking at the GDP data in more detail, the statistics showed the UK economy shrank by 7.3% year/year in Q4 rather than the 7.8% predicted. The quarter/quarter expansion was revised higher too.

UK GDP data.

Source: DailyFX

The Quiz
Discover what kind of forex trader you are
Start Quiz

In addition, UK Gilt yields continue to advance and similarly it is significant that GBP/USD is not strengthening in response, also suggesting possible weakness in the next few days.

UK 10-year Gilt yield.

Source: Investing.com

GBP/USD Mixed
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -1% 3% 1%
Weekly 3% -1% 1%
What does it mean for price action?
Get My Guide

You can find out here how to trade after a news release

--- Written by Martin Essex, Analyst

Feel free to contact me on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES