When is UK GDP and how could it affect GBP/USD?

UK prelim Q3 GDP Overview

The UK docket has the preliminary Q3 GDP report, which will be published later this session at 8.30GMT. The first estimate of the United Kingdom GDP is expected to steady at 0.3% in the third quarter, same as that seen in Q2. The annualized reading, however, is expected to show that the pace of expansion has slowed to 1.4% in Q3 versus 1.5% previous.

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 GDP print and test 1.3050 levels, as investors would price-out a Nov BOE rate hike. On a much stronger release, the GBP/USD  pair will be offered the much-needed respite, which would push the rates back towards 1.32 handle.

“Technically, the pair remains poised to extend its downward trajectory even below the 1.3100 handle towards testing 100-day SMA support, near the 1.3055 region. A follow through selling pressure has the potential to continue dragging the pair towards the key 1.30 psychological mark. On the upside, 1.3160-70 area now seems to act as immediate hurdle, which if cleared could lift the pair back above the 1.3200 handle towards retesting 1.3225-30 supply zone,”Haresh Menghani, Analyst at FXStreet explains.

Key notes

UK GDP Preview: Weak sales and trade balance weigh on growth

UK: Q3 GDP likely to print 0.4% - TDS

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).