UK July GDP Records Zero Growth Again, Pound Under Pressure
The GBP/USD pair rose slightly on Wednesday. However, the pound's gains narrowed in the face of a series of weak UK macroeconomic data.
The GBP/USD pair rose slightly on Wednesday. However, the pound's gains narrowed in the face of a series of weak UK macroeconomic data.
This came after US Democratic candidate Harris and Republican candidate Trump had their first presidential debate between the two, with both sides trading barbs on a number of issues including abortion restrictions.
On the performance of the two, Shinichiro Kadota, currency strategist at Barclays, felt that Harris was the better of the two, stating, “Harris was seen as winning the debate, leading to a decline in U.S. Treasury yields and a weaker U.S. dollar.”
Meanwhile, according to the latest report from the Office for National Statistics, the U.K. economy once again grew at zero in July. This compares to the market's general forecast of 0.2% GDP growth.
While service sector output grew by 0.1% in July, industrial production fell by 0.8% and construction output decreased by 0.4%.
UK GDP grew by 0.5% in the three months to July, mainly thanks to growth in the services sector, compared with 0.6% in the previous quarter.
The GBP/USD pair was up 0.03% at 1.3083 as of 07:57 GMT on Wednesday.
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