Forex News

The euro fell amid a decline in UK GDP to a 5-year low

On Friday, the pound fell against its main competitors in early European trading, as data showed that economic growth in the UK slowed to more than a five-year low in the first quarter, lowering expectations of a rate hike by the Bank of England in May.

of national statistics showed that the gross domestic product in the first quarter grew by only 0.1 percent, which was the weakest value since the fourth quarter of 2012. It was expected that GDP will grow by 0.3 percent. In the fourth quarter, the economy increased by 0.4 percent.

The annual GDP growth in the first quarter was 1.2 percent, which is below the expected growth of 1.4 percent.

Another report showed that three months before February, the volume of services increased by 0.4 percent compared to the three months ending November 2017.

In February, the volume of services fell by 0.2 percent compared to the previous month.

GfK survey data showed that trust UK consumers weakened in April after improving the previous month.

Index otrebitelskih sentiment fell to -9 in April from -7 in March. Meanwhile, it was predicted that the index will remain stable at -7.

The pound sterling grew against its main opponents in the Asian session due to a rise in appetite amid strong quarterly data.

The pound declined 0.9 percent to a minimum of 1.5802 against the US dollar after 1.5 months, after reaching 1.3934 at 11:30 am North American time. The pair was trading at 1.3913 when it closed trading on Thursday. If the pound continues to decline, the 1.35 area will be seen as the next support level.

From an early high of 152.28 against the yen, the pound fell to a 4-day low of 150.96. At yesterday’s close, the pair was trading at 152.07. The following key support for the pound is in the region of 148.5.

The Bank of Japan kept the cash incentive unchanged, as expected.

Governor Haruhiko Kuroda and board members decided by a majority vote (8 vs. 1) to implement the task of increasing the volume of JGB assets at an annual rate of about 80 trillion yen.

The UK currency fell from an early high of 0.8682 against the euro, falling to 0.8744. The euro-pound pair closed on Thursday at 0.8696. The pound will find support in the 0.90 area.

The European Commission survey showed that the economic sentiment in the eurozone remained stable in April.

The economic sentiment index remained at 112.7 in April. It was expected that the figure would drop to 112.0.

Deviating from the 8-day high of 1.3793, recorded at 2:45 am North American time, the pound fell to 1.3686 against the Swiss franc. The pair closed trading on Thursday at 1.3759. The pound is likely to find support in the 1.34 area.

The New York session will release data on US GDP for the first quarter and the final consumer sentiment index for the University of Michigan in April.

At 10:00 am North American time Governor of the Bank of England Mark Carney will address the opening ceremony of the educational program “econoME” in London.