Jump to content

UK Growth Slows in Q4 – GBP/USD Nudges Higher Against a Strong US Dollar


Recommended Posts

GBP/USD Price, Chart, and Analysis

  • UK GDP increased by an estimated 7.5% in 2021.
  • All eyes on the US dollar after Thursday’s red hot CPI print.
UK Growth Slows in Q4 – GBP/USD Nudges Higher Against a Strong US Dollar

Keep up to date with all market-moving data releases and events by using the DailyFX Calendar

UK Growth Slows in Q4 – GBP/USD Nudges Higher Against a Strong US Dollar

The UK economy grew by 1% in Q4, missing market expectations of 1.1%, according to the latest data from the Office for National Statistics (ONS). UK GDP grew by an estimated 7.5% in 2021, following a 9.4% fall in 2020 the report showed. Monthly estimates show that GDP fell by 0.2% in December but is at its pre-coronavirus level (February 2020).

UK Growth Slows in Q4 – GBP/USD Nudges Higher Against a Strong US Dollar

GBP/USD nudged higher post-release with cable trading around 1.3535. GBP/USD traded as high as 1.3645 on Thursday before the latest US CPI release showed US inflation running at a red hot level of 7.5%, prompting market expectations of up to seven 25 basis point rate hikes this year. There is even mounting talk of a 50 basis point hike at the March meeting and the faint possibility of an intermeeting hike soon.

 

GBP/USD 3 MINUTE PRICE CHART – FEBRUARY 11, 2022

UK Growth Slows in Q4 – GBP/USD Nudges Higher Against a Strong US Dollar

Retail trader data show 52.76% of traders are net-long with the ratio of traders long to short at 1.12 to 1. The number of traders net-long is 12.54% lower than yesterday and 5.40% lower from last week, while the number of traders net-short is 5.52% lower than yesterday and 11.65% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBP/USD prices may continue to fall. Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed GBP/USD trading bias.

image.png

What is your view on GBP/USD – bullish or bearish?

 

Feb 11, 2022 |  Nick Cawley, Strategist. DailyFX

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...