Sterling helped by growth figures

The pound was boosted by a report from the Office of National Statistics (ONS), stating that the UK economy did in fact grow by 0.7% in the last quarter of 2013.

The GBP/USD is trading at $1.6622, up 0.1%, after the ONS confirmed the British economy grew between October and December. The news wasn’t all positive, as the UK’s budget deficit was larger than expected and this could impact the economic recovery.

The pound has been losing ground against the US dollar since the situation in Ukraine arose. This is more to do with dollar strength than pound weakness, and the possibility of a trade war sent traders to buy a quality currency.

The cable has been in an upward trend for the past few trading sessions, and the 50-period moving average is providing support at $1.6596. If the University of Michigan consumer confidence comes in below the expected 80.6 reading, we could see the pound retest the recent high of $1.6655.

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.