THE TAKEAWAY: UK GDP confirmed at 0.3% in Q1 -> Consumer and government spending disappoints expectations -> Pound trading steady
A second estimate of the UK gross domestic product confirmed that the economy expanded by 0.3% in the first quarter of 2013. The economic expansion saved the UK from a triple dip recession. The GDP rose 0.6% from Q1 2012, according to the UK Office for National Statistics.
Private consumption increased by 0.1% in Q1, disappointing expectations for a 0.3% increase. Government spending was unchanged, also disappointing expectations for a 0.2% increase. However, exports declined 0.8% in the first quarter, better than expectations for the exports to decline 1.0%.
The Pound did not react significantly to the GDP release, and Cable is trading around 1.5075 at the time of this writing. GBP/USD may next see support by the key 1.5000 figure, and the pair may again see resistance by the 1.5250 figure.
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GBPUSDDaily: May 23, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .