The preliminary estimates for the UK's third quarter GDP saw the UK's economy expand at a slower than expected pace of 0.50%, slowing rapidly from the 0.70% growth seen just a quarter ago. The index of services however expanded at a pace of 0.90%, below estimates of 1.00% but up from 0.80% recorded during the prior period. The major contributor to the quarterly GDP remained the services sector while manufacturing and construction dragged heavily on results. Weakening construction and a slowdown in the real estate sector have largely contributed to the downward pressure on GDP, offsetting gains from the services sector. The British Pound initially reacted with bearish momentum to the news, dipping towards session lows of 1.5310 before staging a modest recovery, but nevertheless closing the session near lows at 1.5303.
FOMC to Determine USD Direction
Daily Analysis - 28/10/2015