Market news

12 August 2021

European session review: GBP edges lower after UK's in-line Q2 GDP data

TimeCountryEventPeriodPrevious valueForecastActual
06:00United KingdomIndustrial Production (MoM)June0.6%0.3%-0.7%
06:00United KingdomManufacturing Production (YoY)June28.2%13.5%13.9%
06:00United KingdomIndustrial Production (YoY)June20.7%9.4%8.3%
06:00United KingdomManufacturing Production (MoM) June0.1%0.4%0.2%
06:00United KingdomBusiness Investment, q/qQuarter II-10.7% 2.4%
06:00United KingdomBusiness Investment, y/yQuarter II-16.9% 9.7%
06:00United KingdomGDP m/mJune0.6%0.8%1.0%
06:00United KingdomTotal Trade BalanceJune-0.2 -2.5
06:00United KingdomGDP, y/yQuarter II-6.1%22.1%22.2%
06:00United KingdomGDP, q/qQuarter II-1.6%4.8%4.8%
06:00United KingdomGDP, y/yJune24.5%14.9%15.2%
08:00FranceIEA Oil Market Report    
09:00EurozoneIndustrial Production (YoY)June20.6%10.4%9.7%
09:00EurozoneIndustrial production, (MoM)June-1.1%-0.2%-0.3%

GBP depreciated against most of its major rivals in the European session on Thursday, as the UK's in-line Q2 GDP data were not seen to be enough to make the Bank of England (BoE) change its monetary policy stance.

The Office for National Statistics (ONS) reported that Britain’s GDP grew by 4.8% q/q in the second quarter of 2021 after a 1.6% q/q contraction in the previous quarter, as activity and demand rebounded amid the easing of coronavirus restrictions. This was in line with economists’ expectations. On a y/y basis, the UK GDP surged by 22.2%, following a 6.1% decline in the first quarter. This marked the fastest pace of expansion on record and was broadly in line with economists’ forecast of a 22.1% growth. Despite solid Q2 expansion, the UK’s GDP was 4.4% below pre-pandemic levels.

Market participants said that they do not expect that the latest data will force the BoE to change its policy stance, as it is expected that the UK’s economic growth will slow down in the third quarter.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

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