British Pound finds optimism following December Economic Growth

British Pound finds optimism following December Economic Growth

The British Pound has appreciated on Tuesday following positive reports of UK Economic Growth in December.

The data from the ONS, painted a positive picture on Tuesday where December was a positive month for the UK economy, however on a quarterly basis economic growth remained flat.

Despite quarterly growth remaining flat, it seems that there was not much hope in the first place as this matched both analyst and market expectations.

Annual GDP for the fourth quarter was 1.1% which showed progression from the 0.8% figure that expectations had set out before the update.

On that note, the British Pound has seen highs today of 1.1858 against the Euro and is currently seeing a 0.0237% appreciation, which currency traders will be hopeful about considering the volatile nature of the British Pound.

Notably, on Tuesday the pound has seen lows of 1.1821 which was a dip from yesterday’s closing price of 1.1834.

The Pound will expect fluctuations across the next few months, much is happening in the world and it seems that Brexit is continuing to take its toll as PM Johnson continues to fight legislators in Brussels on a Brexit withdrawal deal.

The British Pound found optimism today following a positive period of Economic Growth, where gross domestic product grew 0.3% on a monthly basis, reversing a 0.3% decline seen in November and above consensus forecasts for a 0.2% rise.

“Although there is some evidence, both externally and in this dataset, that there has been stockpiling taking place in late 2019 ahead of the second planned EU exit date in October, initial estimates indicate that this was to a lesser degree than that taking place ahead of the original planned EU exit date in March,” said ONS.

The Pound will still see much turbulence over the next few months, and the ONS said that UK GDP was “particularly volatile” in 2019.

Despite the ongoing crisis with the coronavirus, combined with stunted Brexit negotiations it seems that currency traders are staying cautious and on edge as the Pound ebbs and flows everyday as negotiations and global events unfold.