The Pound Sterling remained under pressure against both the Euro and the US Dollar despite an unexpected improvement in GDP data which was released by the UK’s Office of National Statistics a short while ago. According to the ONS, preliminary 2nd quarter GDP data improved to 2.2% year-on-year while on a quarter-over-quarter basis the outcome was 0.6%. A recent poll showed economists had expected 2.0% and 0.4% GDP, respectively. Analysts warn that the numbers are “backward-looking” and as such will have little significance for the Pound.
As reported at 10:51 am (BST) in London, the GBP/USD was trading lower at $1.3099, down 0.29%; the pair is trading just off the session low of $1.309 while the peak earlier hit $1.316. The EUR/GBP was trading at .8397 Pence, a gain of 0.40%.
Future for Pound Still Shaky
Investors remained concerned that the Brexit vote will have had a negative impact on the UK economy. Today’s numbers only reflect a single week’s outcome into the period after June 23rd, when the referendum took place. Nonetheless, one currency strategist said that they will give markets a baseline as to how the economy was faring at the Brexit stage. Since the referendum, the Pound had lost nearly 12% versus the greenback. Analysts say that today’s figures are not likely to help markets gauge the Bank of England’s next move, however.