GBP – Sterling Waits For Prelim GDP Data

The Sterling has underperformed the past week and a half compared to the other major currencies when gauged against the USD. The reason for this is because the U.K. is known to be struggling with its stated goals for growth and there is speculation that the Bank of England may be forced into another round of quantitative easing – much like the shadow over the Federal Reserve in the United States. Today the Prelim GDP will be released and the forecast is calling for a gain of 0.4%. Investors will watch the GDP result carefully and will want to take into consideration if the economy is slowing down. Having said that, the U.K. has produced surprises with the GDP results this year and traders will have to be on their toes when this number is released. If the growth number is worse than expected it could spur on some GBP selling.

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