Sterling boosted by US GDP

The pound is up 0.25% versus the US dollar, after the US announced worse-than-expected growth figures.

The GBP/USD pairing is trading at $1.6866, up 0.25%, after the US revealed first-quarter gross domestic product of 0.1% when consensus was for growth of 1.2%. The pound managed to hold on to the $1.68 level even though the UK growth figure also came in slightly under expectations, but it is now at new multi-year highs on the back of softer-than-expected US growth figures.

At 7pm (London time) the Federal Reserve will make its interest rate decision and release a statement. The market is not expecting a change in interest rate but traders will be focused on the statement in any case, as recently Fed chairmen Janet Yellen stated that the US central bank will support the economy as long as support is required. If tonight’s statement is on the dovish side, we could move towards Chris Beauchamp’s target of $1.69.

Spot FX GBP/USD chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.