GBPUSD gets fresh buys above 1.1700 thanks to UK Gross Domestic Product (GDP) data. However, ING economists continue to believe that the domestic environment remains difficult for the British pound.
The economic downturn is not as severe as feared, for now
“The GDP figures for the second quarter showed a lower than expected contraction (-0.2% quarter-on-quarter), although this was mainly due to the upward revision of the August figures. By the way, the September figures have been greatly affected for the Queen’s funeral holiday. Even so, our British economist expects a contraction in every quarter until the second quarter of 2023and much of the focus will obviously be on the measures announced next week by the Treasury.”
“The domestic picture for the British pound remains uncertain at best, and we think this puts GBPUSD at risk of fairly quick corrections. in case the support of a weaker dollar evaporates”.
Source: Fx Street
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