UK annual growth Q4 a surprise positive – BNP

By FXStreet Analysts at BNP Paribas explained that UK growth for Q4 was unexpectedly revised up today, lifting the annual growth rate for 2015 to an above-trend 2.3%.

Key Quotes:

“Next week we will get further details on economic activity in Q1 with the release of the March services PMI.”

“We remain of the view that the GBP could rally sharply if sentiment around the UK outlook improves, considering that BNP Paribas FX Positioning Analysis is signalling that the market holds the largest short GBP position since 2008.”

“Consistent with signals from positioning, STEER indicates that GBP looks cheap versus both the EUR and USD, with fair values for GBPUSD and EURGBP at 1.4602 and 0.7574 respectively.”
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Source:: FX Street