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1 Feb 2016
GBP/USD: mixed outlook, wide range - UOB
FXStreet (Guatemala) - Analysts at UOB Group noted the recent conditions formed around the pound.
Key Quotes:
"The UK’s advance 4Q 2015 GDP growth matched expectations at 0.5 q/q from 0.4% q/q in 3Q. Figures from the ONS showed output increased in two of the main industrial groups – services and agriculture. In contrast, production fell 0.2% and construction dropped 0.1%.
Year-on-year GDP also rose in line with estimates by 1.9%, the lowest since 1Q13 when it was 1.4%. The ONS compared this to 2014 when GDP as a whole increased by 2.2%.
"The sharp drop last Friday indicates that the 1.4410/15 high is the extent of the corrective rebound and the ideal level of 1.4450 mentioned previously is not met. The outlook from here is rather mixed and this pair is expected to trade in a broad 1.4080/1.4420 range, at least for another several more days."
Key Quotes:
"The UK’s advance 4Q 2015 GDP growth matched expectations at 0.5 q/q from 0.4% q/q in 3Q. Figures from the ONS showed output increased in two of the main industrial groups – services and agriculture. In contrast, production fell 0.2% and construction dropped 0.1%.
Year-on-year GDP also rose in line with estimates by 1.9%, the lowest since 1Q13 when it was 1.4%. The ONS compared this to 2014 when GDP as a whole increased by 2.2%.
"The sharp drop last Friday indicates that the 1.4410/15 high is the extent of the corrective rebound and the ideal level of 1.4450 mentioned previously is not met. The outlook from here is rather mixed and this pair is expected to trade in a broad 1.4080/1.4420 range, at least for another several more days."