OctaFX | OctaFX Forex Broker
Open trading account

Forex Flash: UK to avoid triple-dip recession after rising 0.1% in Q1 - RBS

FXstreet.com (San Francisco) - The National Statistics is scheduled to publish the UK Q1 GDP report on Thursday at 8:30 GMT (9:30 London time) and market is expecting the UK to publish a weak 0.1% QoQ growth in the Q1, and 0.3% in year basis. RBS analysts expect the same 0.1% increase in the quarterly basis but they are more optimistic with 0.4% growth year to year.

"The economy contracted in the final quarter of 2012 (-0.3% q/q) but we expect a technical triple-dip recession to be narrowly avoided with growth of 0.1% q/q, 0.4% y/y, in Q1 2013," points the RBS analysts team. "The UK economy remains in a precarious state – a state of ‘crisis’ in the words of BoE Governor-elect Mark Carney – with weak external demand, domestic deleveraging and overshooting inflation combining to weigh on real output," continues the bank.

For 2013 as a whole, the RBS bank looks for "GDP growth of 0.7%, which would be the fifth year in six where GDP growth has been just 1% or lower."

Forex: USD/CAD erases intraday gains

The US dollar gave up ground across the board and erased gains versus the loonie, as risk appetite improved during the American afternoon and US stock indexes recover.
Read more Previous

Forex Flash: EUR/USD could fall toward 1.2600 - UBS

FX markets ignored on Wednesday bad data out of Europe and out of the US, according to the UBS analyst team. "In Germany a weak ifo index re-inforced expectations for a rate cut by the ECB on May 2nd. In the US a surprising fall of durable goods orders questioned the timing for tapering off the quantitative easing program".
Read more Next
Start livechat