Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
You Need to Watch After the GDP Release in Britain
What will happen?
Great Britain’s office for national statistics will release preliminary gross domestic product (prelim GDP) on February 11, 9:00 GMT+2. Estimates of GDP are released on a monthly and quarterly basis. Quarterly ones tend to have the most impact as they collect the data from bigger periods. It's the broadest measure of economic activity and the primary gauge of the economy's health.
What is the impact on the GBP?
GDP reflects a change in the inflation-adjusted value of all goods and services produced by the economy. Thus, bigger-than-expected (or just huge) numbers tell us about economic growth. Unfortunately, last time the data turned out to be lower than expected. After the release, GBP/USD lost 700 points in several hours—plenty of time to plan and execute any trade.
How to trade on Britain's GDP release?
The market takes higher-than-expected numbers positively for the GBP, while an opposite reading is bearish for the currency.
- If actual numbers beat expectations – the GBP will rise.
- Otherwise, fall.
Check the economic calendar
Instruments to trade: GBP/USD, GBP/CAD, GBP/JPY.
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