Trade Desk Thoughts - U.K. Final GDP

U.K. Final GDP Actual 0.0%, Expected 0.0%, Previous 0.0%

Release Explanation: It measures the monetary value of all goods and services produced within a Country's borders in a specific time period. GDP is calculated on an annual basis, is the broadest measure of activity, and the primary gauge of each economy's overall health. It includes all Company and Personal consumption, government outlays, investments, and exports less imports, that occur within a defined territory.

Trade Desk Thoughts: The U.K. GDP remained flat during the second quarter of 2008, in-line with analysts' expectations. From one year earlier, the U.K. economy expanded 1.5%. Production output fell in the second quarter by 0.7%, from which, manufacturing accounted for the largest decline. Construction output fell by 0.5% compared with an increase of 1.1% in the previous quarter. Household expenditure fell 0.1%. There were drops in the consumption of household goods and services, restaurants and hotels and motor vehicles. The GDP Deflator rose 2.8% from the first quarter.

Forex Technical Reaction: The pound increased 50-pips at the time of the release. Early in the Asian session, the pound bounced off the 20-day moving average, and since then has gained 40 pips. Against the euro, the pound has gained 35 pips today.

Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com

TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.

The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.