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The United Kingdom will report the preliminary estimate of its Q3 Gross Domestic Product this Thursday at 07:00 GMT and the figure is expected to indicate a nice comeback in the three months to September. The release could trigger some action around GBP crosses but it’s unlikely that it could provide sustainable support to sterling, even if the number beats expectations, FXStreet’s Chief Analyst Valeria Bednarik briefs.
Key quotes
“After falling by 19.8% in Q2, the UK economic growth is foreseen at 15.8% in the three months to September.”
“The GDP is measuring numbers from before the latest lockdown, which means that an economic setback in Q4 will likely revert any possible recovery from the third quarter.”
“Once again, and with a few weeks ahead to the definitive dead-line, Brexit negotiations continue and will extend beyond mid-November. Representatives from the EU and the UK said they could reach a deal, although the key issues still undefined are the same they have been discussing since the year started.”
“The GBP/USD pair could get a boost from upbeat readings and approach the 1.3360 resistance area. On the other hand, a discouraging outcome may see it plummeting towards the 1.3100 level, as negative news will tend to have a larger impact on the pound until a Brexit-deal gets done.”