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COZfx: Pound trading higher on UK GDP

Discussion in 'Analisa Fundamental' started by harryer, Apr 26, 2013.

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  1. harryer

    harryer Member

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    COZforex: The pound remained sharply higher against the US dollar on Thursday, as demand for sterling remained strongly supported after data showed that the UK economy returned to growth in the first quarter, avoiding a triple-dip recession.

    GBP/USD hit 1.5480 amid US morning trade, the pair’s highest since February 19; the pair subsequently consolidated at 1.5435, jumping 1.10%. COZforex senior currency strategist Ian • Quigley said, GBP/USD is predicted to find support at 1.5257, and a drop through could take it to the next support line of 1.5192. Meanwhile, the pair is predicted to find its first resistance at 1.5362, and a rose through could take it to the next resistance line of 1.5402.

    The pound strengthened after the Office for National Statistics said UK gross domestic product expanded by a seasonally adjusted 0.3% in the 3 months to March, above expectations for a 0.1% gain.

    The UK’s economy shrank by 0.3% in the final quarter of 2012. The UK economy expanded 0.6% in the first quarter from a year earlier, compared to expectations for a 0.3% increase.

    The ONS said the largest contribution to the increase came from the service sector, which grew by 0.6% in the first quarter. The construction sector remained in contraction territory, shrinking 2.5%. This was partially offset by a 0.2% increase in the production sector.

    UK Chancellor George Osborne welcomed the report, saying the positive data was an encouraging sign that the economy is healing.

    Also Thursday, the Department of Labour said the number of people who filed for unemployment assistance in the US dropped by 16,000 to a seasonally adjusted 339,000, last week compared to expectations for a decrease of 4,000 to 351,000. Jobless claims for the preceding week were revised up to 355,000 from a previously reported increase of 352,000.



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