Trade Magnates - The pound rose on Wednesday after UK GDP grew again in Q3 rising 0.4% quarter on quarter against the prior quarter’s 0.3% reading, with the annual figure unchanged at 1.5% raising the chances of an interest rate hike by the Bank of England on November.
GBPUSD was up at 1.3177, and looks poised for further upside with a potential double bottom forming at the rising trend line support from last year’s lows.
The Office of National Statistics in the UK noted that the country’s service sector was “the largest contributor to GDP growth, with a strong performance in computer programming, motor trades and retail trade”. Gross domestic product grew by 0.4% in the three months to September, up from 0.3% in the previous quarter.
The manufacturing sector also returned to growth, with output rising by 1.0%, but construction activity contracted by 0.7% on the quarter.
The BOE said at their last meeting that the majority of members feel a rate rise will “likely be appropriate in the coming months” if the economy continues to perform as expected.
Meanwhile, the euro fell to the day's lows against the pound following the report, with EUR/GBP at 0.8922.