The UK economy grew 0.5% q/q in the third quarter as expected. Year over year, the level was 2.3%. Both unchanged and as expected.
Nevertheless, GBP/USD fell before the release to a new low of 1.5054 before bouncing back up on the actual number, but still looks somewhat depressed.
Among the details, private consumption is up to 0.8% from 0.7% originally reported and business investment is up as well to 2.2%. These details look good. The downside comes from higher imports.
In general, the UK economy is growing nicely with strong retail sales, higher wages (3% y/y) and positive growth figures. The pessimism of the BOE regarding inflation seems unjustified or somewhat short-sighted.
Perhaps the disappointment comes from a weaker than expected rise in the Index of Services: 0.7% vs. 0.8% predicted, but this is not the top tier indicator here.
The fall of the pound
Further support awaits at the round level of 1.50. Resistance is at 1.515.
