26 Nov 2014
GDP in focus for GBP – BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of GMR at Bank of Tokyo-Mitsubishi UFJ, notes that the pound is unlikely to respond much to the release of the first revision to Q3 GDP today.
Key Quotes
“The pound is unlikely to respond much to the release of the first revision to Q3 GDP today, which is expected to remain unchanged at 0.7% Q/Q.”
“Consumption and fixed asset investment will be drivers of growth while government spending may also contribute. That looks unsustainable though given the budget deficit in the UK in the first seven months of the year is GBP 3.7bn higher than a year earlier.”
“Fiscal consolidation may well act as a drag going forward but we expect the consumer spending side of the economy to more than offset that drag.”
“We remain neutral on GBP/USD and bearish EUR/GBP.”
Key Quotes
“The pound is unlikely to respond much to the release of the first revision to Q3 GDP today, which is expected to remain unchanged at 0.7% Q/Q.”
“Consumption and fixed asset investment will be drivers of growth while government spending may also contribute. That looks unsustainable though given the budget deficit in the UK in the first seven months of the year is GBP 3.7bn higher than a year earlier.”
“Fiscal consolidation may well act as a drag going forward but we expect the consumer spending side of the economy to more than offset that drag.”
“We remain neutral on GBP/USD and bearish EUR/GBP.”