Home Featured The UK Monthly GDP and the Move in Cable

The UK Monthly GDP and the Move in Cable

The UK Monthly GDP and the Move in Cable

Cable is back in the focus with a datapoint that could move consensus on the next BOE meeting. According to the latest survey, 67% of economists believe there will be a quarter-point rate hike. Rest of the economists expect the BOE will pause.

Traders were disappointed by the GDP figures and expected that a hike would be less likely. However, if GDP rises more than expected, then the consensus surrounding a rate increase could strengthen and support the pound.

Here are some things to keep an eye on

UK February Monthly GDP Growth Expected to be 0.1% Comparable to 0.3% in Jan, this was a surprise improvement on the -0.5% in December. The UK was able to manage a positive quarter last year and not fall into recession. However, slow growth worries have not disappeared. The expected rolling three-month growth rate will be -0.1%, compared to 0.0% previously.

Another negative sign is likely to be seen in manufacturing productionAlthough not as bad as the previous month, it is still worrying. Annual Manufacturing Production is forecast at -4.7%, compared to January’s -5.2%. This is partly due to a turnaround of the monthly figure which is expected to be 0.2%, compared with -0.3% reported…

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