The UK\u2019s Office for National Statistics (ONS) will release the advanced prints of the Q3 Gross Domestic Product (GDP) on Thursday. If the figures meet market consensus, the UK economy would have maintained its pace of expansion at 1.4% annualised, showing that momentum could have begun to stall. The QoQ report is expected to show a mild GDP growth of 0.2%.<\/p>\n
At the Bank of England’s (BoE) latest gathering, the Monetary Policy Committee (MPC) anticipated the domestic economy to grow by 1.5% in the current year.<\/p>\n
According to projections, the BoE could further lower its policy rate by an additional 25 basis points at its December 18 gathering, particularly following a cooling labour market and a loss of momentum in domestic inflation.<\/p>\n
Projections for the UK GDP<\/p>\n
The Office for National Statistics (ONS) reported that the UK economy expanded 0.3% QoQ in the second quarter, compared with the 0.7% gain posted in the January-March period. On a monthly basis, the UK GDP expanded by a meagre 0.1% in September and is expected to remain flat in October. <\/p>\n
<\/p>\n
In its latest meeting, the BoE<\/a> downgraded its forecast for economic growth and now expects GDP<\/a> to expand by 0.2% in Q3 (from \u201caround 0.4%\u201d in September).<\/p>\n Regarding inflation, the UK’s Consumer Price Index (CPI) continues to rank among the highest within its major peers. As indicated by the most recent ONS report, in September, the headline CPI rose by 3.8% YoY, while the core print gained 3.5% YoY and 4.7% from services inflation.<\/p>\n When will the UK release Q3 GDP, and how could it affect GBP\/USD?<\/p>\n The UK will release the preliminary Q3 Gross Domestic Product (GDP) on Thursday at 7:00 GMT.<\/p>\n Pablo Piovano, Senior Analyst at FXStreet<\/a>, says, \u201cGBP\/USD\u2019s current recovery appears to have met some decent hurdle around the 1.3200 region.\u201d<\/p>\n \u201cIf bulls push harder, Cable could challenge its critical 200-day SMA in the 1.3270 region, prior to provisional barriers at its 55-day and 100-day SMA at 1.3382 and 1.3420, respectively. Further up comes the October top at 1.3527 (October 1), prior to the September ceiling at 1.3726 (September 17),\u201d Piovano adds.<\/p>\n \u201cOn the flip side, the loss of the November base at 1.3010 (November 5) could see the next significant contention not before the April floor at 1.2707 (April 7),\u201d he concludes.<\/p>\n Economic Indicator<\/p>\n Gross Domestic Product (YoY)<\/p>\n The Gross Domestic Product (GDP), released by the Office for National Statistics<\/a> on a monthly and quarterly basis, is a measure of the total value of all goods and services produced in the UK during a given period. The GDP is considered as the main measure of UK economic activity. The YoY reading compares economic activity in the reference quarter compared with the same quarter a year earlier. Generally speaking, a rise in this indicator is bullish for the Pound Sterling (GBP), while a low reading is seen as bearish.<\/p>\n