Home Forex News UK Q2 GDP Pushed British Economy into Recession

UK Q2 GDP Pushed British Economy into Recession

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Sterling continues to get support after modest ease in GDPcontraction. The 8.7% m/m rise in GDPin June (consensus +8.0%) was quicker than the 2.4% m/m gain in May (revised up from 1.8% m/m) and shows that the economy has started to recover from the Covid recession at a faster pace. But a full recovery probably won’t be achieved until early 2022, which is why we think the Bank of England will yet expand QE. June’s rise wasn’t enough to prevent GDPfrom falling by 20.4% q/q in Q2 as a whole (consensus -22.6%).

TREND : SIDEWAYS

Time                                      :           13/08/2020

Pivot                                      :           1.3043

Technical View                     :             LONG ABOVE 1.3063

Target                                   :            1.3083, 1.3097, 1.3112, 1.3115

Technical View                     :             SHORT BELOW 1.3023

Target                                   :            1.3003, 1.2974, 1.2949

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