020 7898 0500Sterling continued to trade within a tight range as UK growth show that the nation grew at a tepid 0.3% in Q2. This was pretty much in line with expectations and is a stark reminder of the tough economic challenges that both the Bank of England and government face in these uncertain times.
It was the first reading of three for Gross Domestic Product (GDP), but what needs to be noted is that it is a big slowdown compared to a year ago. However, it was not surprising as households are being squeezed with wages not keeping up with inflationary prices. In addition, with Brexit uncertainty looming, households and businesses are reluctant to spend.
Earlier this week, the International Monetary Fund said it expects UK GDP to grow by 1.7% instead of its previous projection of 2%; based on the current trajectory the downgrade is not a surprise.
There is no economic data set for release today, but the market will still be deciphering the Federal Reserve meeting details from last night.
