26 Sep 2013
Sterling slides on GDP revision
FXstreet.com (London) - Sterling has taken a knock this morning after revised figures from the UK Office of National Statistics showed that UK GDP had increased 1.3 percent in the 12 months to June, compared with the initial ONS reading of 1.5 percent. In the second quarter, the UK economy expanded by 0.7 percent, in line with the August numbers.
The revision saw GBP/USD fall 0.24 percent to USD1.6034 after starting the day at USD1.6096 highs following US debt ceiling worries.
Cable has seen steady gains since July lows of USD1.4861 thanks to a consistent strengthening of UK macro data. The run of sterling bullishness may be topping out, with positive macro data ceasing to surprise. However, dollar will come under pressure if US debt ceiling agreements are drawn out.
The US is scheduled to reach its USD6.799 trillion debt ceiling by mid-October. Talks between Democrat and Republican lawmakers have stalled over issues of healthcare funding and Republican wishes to tie and debt ceiling increases to a cut in federal spending.
EUR/GBP jumped to GBP0.8408 after testing January lows of GBP0.8180 earlier this month.
UK 10-year gilts remain steady at 2.74 percent.
The revision saw GBP/USD fall 0.24 percent to USD1.6034 after starting the day at USD1.6096 highs following US debt ceiling worries.
Cable has seen steady gains since July lows of USD1.4861 thanks to a consistent strengthening of UK macro data. The run of sterling bullishness may be topping out, with positive macro data ceasing to surprise. However, dollar will come under pressure if US debt ceiling agreements are drawn out.
The US is scheduled to reach its USD6.799 trillion debt ceiling by mid-October. Talks between Democrat and Republican lawmakers have stalled over issues of healthcare funding and Republican wishes to tie and debt ceiling increases to a cut in federal spending.
EUR/GBP jumped to GBP0.8408 after testing January lows of GBP0.8180 earlier this month.
UK 10-year gilts remain steady at 2.74 percent.