Hit by YouGov Poll and Disappointing Data, Sterling Extends Downbeat Moves Versus Dollar
Sterling continued to edge lower versus the greenback on Friday, hit by an unexpected poll result which came on the heels of disappointing economic data on Thursday.
A YouGov poll released late Thursday showed a dramatic narrowing of the gap between the Conservatives (43 percent) and the Labour Party (38 percent). In previous polls conducted earlier this month, the gap has been as high as 24 points.
The Pound lost another 0.4 percent against its American counterpart after having sunk by 0.3 percent on Thursday following ONS data that showed Britain’s economy’s growth rate slowed more than previously reported in the first quarter of this year.
According to the Office for National Statistics, the U.K. GBP grew just 0.2% in the first quarter of 2017, a pace that was down even more sharply than first thought. This also marked a considerable decline compared to the 0.7% growth in the final three months of 2016.
On Friday, the U.S. Bureau of Economic Analysis is scheduled to publish GDP data for the last quarter, which is expected to show the world’s largest economy expanded by 0.9 percent in the three-month period through March.
Data on Core Durable Goods Orders for April will also be released. Economists anticipate a reversal compared to the previous month. Particularly, total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items, is predicted to advance by 0.4 percent on a monthly basis in April.
Sell Stop at 1.28800, Take profit 1.28400, Stop loss at 1.29000