Forex: GBP/USD slightly higher on UK update-free day

Written by: Violina Todorova
July 26, 2013 Friday July 26th:_ Today’s Asian session for the GBP/USD started at 1.5378, with the quote rising to a current intraday high at 1.5404 so far. Ahead of the European opening though, the pair retraced to its lowest exchange rate for the day to this point at 1.5372.

In the absence of any economic updates from the UK today, the pair’s further movements will likely be influenced by the Thomson Reuters/University of Michigan Consumer Sentiment Index for July which is due out at 14:55 BST. June’s reading was 83.9 and forecasts for this month are for a rise to 84.0.
Sterling rose to a one-month high at 1.5433 against the greenback yesterday, late in the American session and following encouraging signs of economic growth in the UK.

The preliminary reading of the UK’s GDP for the second quarter of the year came out as a rise of 0.6 percent q/q from 0.3 percent in the prior period.
Annualised, GDP in Q2 increased 1.4 percent to be well up on the prior quarter’s 0.3 percent.
The UK Services Index clocked in as 0.8 percent growth in the three months to May, after rising 0.2 percent in the April quarter, beating expectations for a 0.2 percent increase.

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