UK POUND EXTENDS UPTICK ON STRONG Q1 GDP DATA

Published on May 10, 2024 15:38

Pound extended gains against the dollar on Friday as greenback stays on defensive after US data showed higher than expected weekly jobless claims that could prompt the central bank to do away with higher interest rates. Besides, improved data from domestic docket showed UK economy exited a technical recession in the first quarter with the economic output growing better than expected led by a rebound in the services output and household spending. Gross domestic product grew 0.6 percent from the fourth quarter, when the economy shrunk 0.3 percent, preliminary estimates from the Office for National Statistics showed Friday. GDP rose 0.2 percent year-on-year in the first quarter, beating expectations for stagnation. The monthly GDP growth for March was 0.4%, stronger than the consensus of 0.1% and the prior reading of 0.2%, upwardly revised from 0.1%. Meanwhile, the UK ONS showed that monthly Industrial Production rose by 0.2% in March against expectations of a decline of 0.5%. Annually, the Industrial Production grew at a higher pace of 0.5% from the estimates of 0.3%. GBPUSD is currently quoting at $1.2533, up 0.06% on the day. Yesterday, the BoE kept interest rates steady for the sixth straight meeting.