Stock indices S&P 500 and Nasdaq are falling for seven days in a row. The New Zealand dollar skyrocketed to almost two-years highs. Fed’s Powell held a meeting yesterday and said that the central bank wouldn’t tight its easing policy anytime soon.
How to trade pound after UK GDP?
The UK will report its GDP on February 12 at 9:00 MT time. Let’s get ready for this release.
What will happen?
The gross domestic product indicator (GDP) is the broadest measure of economic activity and the primary gauge of the economy's health. There are 2 types of GDP releases: preliminary and final. A preliminary report is the earliest and thus tends to have the most impact. This Friday, the UK will publish preliminary GDP. UK GDP rose by 16% in the third quarter of 2020 after a record 18.8% drop in the previous three-month period. Notably, this was the highest increase since 1955. However, the level of UK GDP is still well below its pre-pandemic levels. Will the GDP report again surprise investors with upbeat data?
How to trade on UK GDP?
- If the GDP beats the forecast, the GBP rises.
- If the GDP comes lower than expected, the GBP falls.
Instruments to trade: GBP/USD, EUR/GBP, GBP/JPY
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