Fundamental Comment

British pound holds gains despite weak GDP

British pound holds gains despite weak GDP

The British pound was able to maintain the gains that it started in three consecutive sessions, despite the weak growth data released today by the British economy, which lost the momentum of recovery from the negative effects of the Corona pandemic.

The sterling against the dollar is trading at the level of 1.2947, after hitting the highest level at 1.2971, and it had opened trading today at the level of 1.2922.

Today, the British economy’s GDP for the month of August showed a growth of 2.1%, while expectations had indicated a growth of 4.6%. The previous reading was revised to show a growth of 6.4% from 6.6%. Much of the growth in August was due to the one-time government restaurant subsidy.

British Finance Minister pointed that the household sector in Britain is still concerned about the developments that may occur in the coming months, especially after the second wave of the Corona pandemic began and the number of infections started to increase again, which affects their spending behavior.

However, despite this, Sunak indicated that the British economy managed to record growth for four consecutive months, and that the British government aims to protect and provide the largest number of jobs, especially in light of the decline in consumer confidence, which will negatively affect the opportunities for creating new jobs.

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