GBP: All eyes on the release of UK Q2 GDP data – TDS

By FXStreet FXStreet (Delhi) – Prashant Newnaha, Rates Strategist at TD Securities, suggests that today’s focus will be on the release of Q2 GDP numbers for UK which are likely to fully incorporate major historical—but highly academic—revisions, but this may generate a lot of chatter about how the UK economy is faring better than first reported.

Key Quotes

“We already know that GDP growth from 2011 to 2013 will be revised up significantly (by up to 0.5% per year), which will undoubtedly generate some hawkish headlines. However, barring any major changes to the 2015 numbers, the MPC will see the revisions as purely structural, and won’t even entertain the idea of changing their policy stance.”

“Also out is the Index of Services for July, which has remained steady around 3% y/y growth since the beginning of 2014. Risks around consensus’ estimate of a 0.2% m/m gain in July are balanced.”
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Source:: FX Street