When are UK GDP/ Current account and how could they affect GBP/USD?

UK final Q1 GDP/ Current account Overview

The UK docket has the final Q1 GDP report, alongside the currency account data, both of which will be published later this session at 8.30GMT. The thrid estimate of the United Kingdom GDP is expected to decelerate to 0.2% in the first quarter, against 0.7% growth seen in Q4. The annualized reading is also expected to show that the pace of expansion has held steady at 2.0% in Q1.

Meanwhile, the UK current account deficit is expected to widen by GBP -17.25 billion in the first quarter versus an increase of GBP -12.088 billion seen previously.

Deviation impact on GBP/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 10 and 40 pips in deviations up to 2.5 to -2.5, although in some cases, if notable enough, a deviation can fuel movements of up to 70 pips.

 How could affect GBP/USD?

The spot could take a beating on a softer personal spending component of the GDP and widening trade deficit, extending the corrective slide in GBP/USD below 1.3000 levels.

Technically, to the upside, the immediate resistance is the 1.3050 (psychological mark/ May tops) followed 1.3065 (daily classic R2/ Fib R3) and then 1.3100 (round figure). On the downside, support could be located at 1.2987 (daily pivot), 1.2938 (Jun 29 low) and 1.2899 (5-DMA). 

Key notes

GBP/USD eases-off 5-week tops, but keeps 1.3000 ahead of UK GDP

GBPUSD: Prefer to buy dips

About UK prelim GDP

The Gross Domestic Product released by the National Statistics is a measure of the total value of all goods and services produced by the UK. The GDP is considered as a broad measure of the UK economic activity. Generally speaking, a rising trend has a positive effect on the GBP, while a falling trend is seen as negative (or bearish).