UK Q3 GDP final read upgraded to 1.7% y/y – GBP/USD ticks up

The British economy grew by 0.4% in Q3 2017 also according to the final read, but on a yearly basis, growth was upgraded from 1.5% to 1.7%, a bit of good news. The total business investment was revised up to 0.5% from 0.2%. Services are up 0.2%.

This small upgrade was countered by a disappointment on the current account read: a deficit of 22.784 billion pounds, worse than 21.2 billion that was expected.

GBP/USD is slightly higher after the publication, rising to 1.3377. The moves are quite shallow, especially in comparison to what is going on with digital coins.

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The UK was expected to confirm the GDP growth reads: 0.4% q/q and 1.5% y/y in the third quarter of 2017. This is the third and final print and usually doesn’t carry changes, especially not to the quarterly number. Revisions to the composition of growth are more frequent. Britain’s current account balance was predicted to squeeze from 23.18 to 21.2 billion pounds.

GBP/USD traded in a narrow range ahead of the publication, around 1.3376. Support awaits at the round number of 1.33 while resistance is at 1.3450, but the recent ranges are much narrower.

Brexit negotiations have dominated recent trading. The breakthrough on the initial phase of the talks was marred by the prospects of a hard Brexit: unfavorable trading arrangements after the UK exits the EU.

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Internal politics have also been high on the agenda: May’s government suffered a defeat in a vote in the House of Commons. These topics could continue weighing on the pound also in 2018.

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