The UK grew by 0.7% in Q4 2013 also according to the second release of GDP. No change was expected from the first release of GDP, which showed a growth rate of 0.7% for the UK in Q4 2013. A third and final release is still pending. Year over year, there was a small downgrade from +2.8% to +2.7%.
GBP/USD was trading at around 1.6675 before the publication, steady within its range. The immediate reaction was a move above 1.67, but this wasn’t sustained.
At the same time, the UK released the initial business investment number for Q4 2013. It was expected to rise by 2.6% after 2% in Q3. This disappointed with a rise of 2.4%, less than 2.6% expected.
The higher expectations for a rate hike help boost the pound, which attempts to regain the highs.
While the central bank signaled a rate hike in Q2 2015, recent data was disappointing, especially the rise in the unemployment rate and the drop in inflation.
