UK GDP

Sterling’s surge petered out this morning on the back of disappointing GDP data. Despite this, losses have been limited and the pound continues to show genuine resilience despite the ominous cloud of election uncertainty forming overhead.

The UK’s mantle as the fastest-growing G7 economy remains intact, with the US print tomorrow unlikely to threaten this morning’s 2.4% annualised growth rate. These preliminary figures delivered a first look Q1 of this year and the story suggest a loss of momentum, particularly in the business and finance sectors, despite the growth story remaining broadly upbeat. A storm is clearly brewing with the anticipated hung parliament a guarantee of turbulent trading for the pound in coming weeks, yet sterling resilience confirms investors are increasingly willing to look beyond this to the clouds clearing and a rosy economic dawn, with interest rate hikes just over the horizon…

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