It was the hawks versus the doves of the BoE and today the hawks won. Even with the UK falling into a double-dip recession, the BoE has already told the market that the economy is actually stronger than the number would reveal. They are ignoring today’s GDP release. And the market followed suit with new yearly highs. We noted yesterday that any sterling weakness on the back of a disappointing GDP number would be temporary. Coupled with Bernanke keeping the door open for QE, $GBPUSD bulls remain well supported above 1.60.
- Britain back in recession after shrinking 0.2% in Q1 (Hurriyet Daily News)
- UK and US GDP (YoY) figures (Chart.ly)
- Bernanke: Monetary Policy In The Right Place, For The Time Being (Forex Live)
- GBPUSD Update (50’s Blog)
- GBPJPY 4H update (Chart.ly)
- US and UK to collaborate on ‘floating’ wind turbines (Kleenergy Ecosystems)
- UK ‘could become one of world’s biggest shale gas producers’ (The Telegraph)
- This Is The UK’s Weakest Recovery In 100 Years (Business Insider) [an economic history lesson]