The Pound revived responding to the statistics. Overview for 13.05.2020

GBPUSD stopped falling on Wednesday morning; it is trying to reach stability after the report on the British GDP.

The British Pound is quite stable against the USD on Wednesday after falling earlier this week. The current quote for the instrument is 1.2289.

The British GDP showed -2.0% q/q in the first quarter of 2020, which is better than the expected reading of -2.6% q/q. On YoY, the indicator lost 1.6% and it’s also better than market expectations. The components of the report show that the decline was mostly contributed by the service industry (-1.9% after +0.2%) and construction (-2.1% after -0.7%). 

On MoM, the GDP lost 5.8% in March after showing -0.2% the month before.

Both April and May will be very stressful months for the United Kingdom. If the quarantine restrictions are removed by June, the indicator may start improving a little bit only in July, if not later. 

The Industrial Production in the country lost 4.2% m/m in March after adding 0.1% m/m in February and against the expected reading of -5.5% m/m. The Manufacturing Production and the Construction Output m/m plunged by 4.6% m/m and 5.9% m/m against the expected readings of -6.0% m/m and -7.0% m/m respectively. 

Everything is pretty gloomy but logical. However, since the negative statistics turned out to be more positive than expected, then the Pound has a reason to reach stability.