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