- UK GDP better than forecast
- US President-elect Joe Biden announces a USD1.9 trillion stimulus package.
Data revealed that the UK economy held up better-than-expected. The latest GDP figure beat forecasts and last month’s prints were also revised higher, despite the Covid-19 lockdowns. Whilst output fell, the decline was not as large as that seen in March and April, as businesses adapted to the restrictions.
Meanwhile the vaccination program is well underway with over 2.9 million people having had the first shot of the vaccine. The vaccine programme is expected to ramp up soon as the government aims to vaccinate 15 million people by mid-February. Lockdown will only end when this goal has been achieved.
GBP/USD trades at 1.3650, underpinned by GDP data. The USD1.9 trillion US stimulus package announced last night, could drag on the greenback in the foreseeable future.