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

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.