According to the first revision of British GDP, the British economy still grew by 0.5% in Q3. Early expectations stood on no change to the initial estimate, so there´s no surprise here.
Another figure published at the same time disappointed: business investment dropped by 1.4% in Q3. A drop of 0.5% was expected. It’s important to note that upwards revisions have usually been seen with this indicator.
The Index of Services rose by 0.6%, double the early expectations for a rise of 0.3%, but this is a minor figure.
GBP-USD is trading around 1.5550 following this release, not much changed. Weak support is found at 1.5530, with more significant support at 1.5480. Above, resistance appears at 1.5630.
For more on the pound, see the GBP/USD forecast.
The pound dropped after an escalation in the European debt crisis. Germany failed to cover a bond auction yesterday, and worries certainly grew. This pushed money to the safety of the US dollar.
On the other hand, this auction sent investors from German bunds to British gilts, supporting the pound, especially against the euro.
Later, Britain will release the CBI Industrial Order Expectations, which are predicted to drop from -18 to -19, deep in negative territory.
