FOREX
The pound is making some modest, but nonetheless remarkable, gains versus both the euro and the dollar during early European trading this Wednesday. Despite this morning’s publication of the first quarter GDP data, which showed the economy contracted by 2% during the first quarter, sterling found support and even gained some ground because the drop in economic output was smaller than expected, with the pre-publication consensus that there would be a fall of 2.5%.
But the respite is unlikely to be long-lived as worryingly the month of March, when the lockdown started, presented the worst GDP decline on record, hinting that this quarter’s figures will be considerably worse.
GBPUSD chart
Ricardo Evangelista – Senior Analyst, ActivTrades
