In line with second GDP forecast for the first quarter of 2017, the UK economy slowed down more than expected, resulting in excessive inflation. Just two weeks before parliamentary elections, GDP growth was weakest from over a year.
GDP in q/q increased by + 0.2% compared to the previous forecast + 0.3%. Most economists surveyed by Reuters news agency argued that the projections will be unchanged, what is already a strong depreciation of + 0.7% observed in Q4 2016. Annual growth slowed to 2% from the initial +2,1 forecast. Pound sterling on the data reacted with strong declines. However, interestingly few minutes before the publication, grew dynamically, jumping to new session maxima. Should we have dealt with leak of information?
The GBP / USD D1 chart at this point is forming a bar drop bar under the round resistance.
