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GBP/USD gives up GDP-inspired gains

FXStreet (Córdoba) - GBP/USD failed to sustain GDP-inspired gains and quickly pulled back to pre-data levels to trade little changed on the day.

GBP/USD spiked to a daily high of 1.6070 only to slid back to the 1.6030 zone soon after. At time of writing, the pair is trading at 1.6040, 0.09% above its opening price. GBP/USD is on track to post a weekly loss following two consecutive gains.

Slower GDP growth and BoE rate expectations

The UK GDP grew at the slower pace of 0.7% in the third quarter and decelerated from 3.2% to 3.0% year-over-year. “Combined to moderate recovery in the Euro-area and to slowdown fears in US and China, the BoE is now expected to delay its first rate hike to the second half of 2015 (vs. February targeted formerly)”, said the Swissquote team. “The moderate wage growth in UK labor market and the disinflationary pressures sustain a longer period of loose monetary policy in the UK”.

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