UK Growth Surges, Sterling Underpinned, FTSE 100 Prints a Fresh High

GBP/USD and FTSE100 Analysis and Charts

• UK system ‘going gangbusters’ – Office for National Statistics.
• Sterling underpinned, FTSE 100 continues to people grounds highs.

The UK system grew by 0.6% successful the archetypal 4th of the year, driven by a 0.7% summation successful services output, beating analysts’ forecasts and ending the method recession seen past year. Nominal GDP is estimated to person grown by 1.2% successful Q1. According to ONS main economist Grant Fitzner, ‘ to paraphrase the erstwhile Australian Prime Minister Paul Keating, you could accidental the system is going gangbusters.’

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Full ONS Q1 GDP Report

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Interest rate cut expectations were pared backmost marginally post-data. The archetypal 25 ground constituent BoE chopped is seen successful August, though the June gathering remains a unrecorded event, with the 2nd chopped forecast for November.

Cable (GBP/USD) moved somewhat higher aft the information release, helped successful portion by a anemic US dollar. The 200-day elemental moving mean (1.2541) is present blocking a further higher and unless US information retired aboriginal contiguous weakens the greenback further, short-term cablegram upside whitethorn beryllium limited.

GBP/USD Daily Price Chart

IG Retail information shows 57.48% of traders are net-long with the ratio of traders agelong to abbreviated astatine 1.35 to 1.The fig of traders net-long is 9.60% little than yesterday and 19.72% higher than past week, portion the fig of traders net-short is 2.23% higher than yesterday and 13.42% little than past week.

We typically instrumentality a contrarian presumption to assemblage sentiment, and the information traders are net-long suggests GBP/USD prices whitethorn proceed to fall.

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The FTSE 100 continues to station caller all-time highs, with today’s GDP information sending the UK large committee done the 8,400 barrier. The ongoing re-rating of the FTSE 100, and accrued M&A enactment has seen the scale surge by astir 1,000 points disconnected this year’s low. Six greenish candles successful a enactment underscore this week’s rally. Going into the weekend, the scale whitethorn slow, but with UK economical assurance increasing further, the outlook remains positive.

FTSE Daily Price Chart

What is your presumption connected the British Pound and the FTSE 100 – bullish oregon bearish?? You tin fto america cognize via the signifier astatine the extremity of this portion oregon you tin interaction the writer via Twitter @nickcawley1.