GBP/USD Exchange Rate Hit and Miss after U.K. GDP Report
The Office for National Statistics stated that the U. K. economy raised 0. 7% in the 4th quarter of 2013, reduced from growth of 0.8% in the 3rd quarter. Though the data is shows growth of 2.8% from the 2012.
On yearly basis, U. K.’s GDP increased from just 0.3% in the 2012 to 1.9% in 2013, the best ever yearly growth rate since 2007. The Office also added that the U. K. service sector rose by 0.8% in the fourth quarter, whereas the manufacturing sector got up 0.9%.
After initial data indicated that the U. K.’s economy got up in a row with prospects in the 4th quarter, the Pound fluctuates amongst hits and misses against the US Dollar on Tuesday. GBP/USD hit the maximum 1. 6626 after Friday and improved only 0.02% to 1.6585 from the last reading.
This data probably will increase uncertainty over the Bank of England's forward directions. More than estimated fall in the U. K. unemployment rate raised prospects that the Central bank will increase interest rates earlier than expected.
Investors were foreseeing Wednesday's policy statement by the Fed among prospects that the bank will slash its asset purchase program by another $10 billion to $75 billion, for every month. The requirement for the US Dollar remained to be supported by the prospects that the Fed will continue to trim down stimulus measures at the Wednesday’s policy meeting.
Opinion on rising market currencies remained delicate before an emergency meeting of Central bank of Turkey later on Tuesday. With EUR/GBP exchange rate dropping off to 0.8232, Pound was a little high against the Euro.