The Pound speeded up its decline. Overview for 22.02.2018

GBPUSD is trading to the downside after the UK GDP report turned out to be worse than expected. 

On Thursday afternoon, the British Pound is falling against the USD. Sales became more serious after they published the revised GDP report in the fourth quarter 2017. The current quote for the instrument is 1.3877.

The second estimate of the United Kingdom’s GDP in the fourth quarter 2017 was weaker than the previous one. The indicator expanded only by 0.4% q/q, which is worse than the previous and expected readings of +0.5% q/q each. On YoY, the decline is even more significant: the GDP added just 1.6%, although it was expected to increase by 2.0%.

The updated readings turned out to be very negative catalyst for both the Pound and strategic investors. In part, the weak growth rate of the British economy may be explained by shutdown of Fortis, the largest and most important pipeline system in the UK, due a crack. Apart from this, some harm was done by the brexit negotiations: the European Union wants too much from the United Kingdom, both in financial and legislative areas.

The export remains a strong point of the British economy, real investments into business – a weak one.

Another reason that made the Pound fall on Thursday is the CBI Realized Sales report. In February, the indicator slowed down and was just 8 points after being 12 points the month before and against the expected reading of 13 points.

RoboForex Analytical Department