UK’s economy grows as expected
The UK economy recorded a growth in the second quarter of 2011 as expected, although the growth registered was less than the previous quarter. The drop in GDP was mainly attributed to an extra holiday for the royal wedding and the tsunami in Japan, which slowed global growth. Year-to-year was also lower than the previous number, the lowest since the first quarter of 2010.
GDP Preliminary q/q came in at 0.2% in Q2, as expected, down from 0.5% in Q1. GDP preliminary y/y fell to 0.7% in Q2 from 1.6%, versus consensus for 0.8%.
GBP/USD surged to a day’s high 1.6414 from 1.6336 following the GDP figures. EUR/GBP fell close to its day’s low at 0.8832 from 0.8870 also after the data.
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