In its preliminary estimate, the UK Office for National Statistics reported third quarter GDP growth of 0.40% compared to the 0.30% expansion witnessed a quarter earlier. Spending in the all-important services sector continued to boost the economy's performance, while construction extended its struggle. While yesterday’s figures gave a small boost to under-fire Finance Minister Philip Hammond ahead of a November budget announcement, they could not materially alter the broad picture of an economy bogged down by squeezed living standards and poor productivity.
With growth on track and inflation above the Central Bank’s target, hints of policy tightening may mark next week’s decision as the Bank of England responds to price pressures and Brexit. Sterling advanced to its highest point in more than a week versus the US dollar after the GDP release. GBPUSD is currently trading around 1.3255, with 1.3310 representing immediate resistance.