There was minimal upward movement in the Great Britain pound despite positive economic data released today by the Office for National Statistics indicating that the UK economy was experiencing positive growth. The pound rose briefly against other currencies such as the euro and the US dollar before retracing its gains.
The data released regarding the UK’s consumer trends, economic well-being, and quarterly national accounts served to push the Great Britain pound slightly higher against the US dollar in the early hours of the European trading session. The economic growth figure was revised to a higher figure of 0.6% from the expected figure of 0.5%. However, the figure for annual growth was revised downwards to 2.2% from the expected 2.3%.
This is the first data regarding a full quarter released since the UK voted to leave the EU on June 23 in a referendum vote. Since then, the pound has weakened significantly against major currencies.
The finance and business services industries were the main drivers behind the revised figures as they exceeded expectations. This was the 15th consecutive quarter that had posted positive economic growth although the figures for the previous two quarters had to be revised downwards by 0.1%.
The positive economic growth was attributed to robust growth in consumer demand. There is also increased optimism from investors regarding the UK’s economic prospects.
The GBP/USD pair was trading at 1.2275 as at 18:42 GMT having tested highs of 1.2299 earlier in the day. The EUR/GBP was trading at 0.8513 as compared to its daily low of 0.8489.
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