GBP is cheerful. Overview for 25.12.2023

The British pound sterling paired with the US dollar appears stable. The current GBPUSD exchange rate stands at 1.2697.

Last Friday, the UK provided updates on another estimate of the country’s Q3 GDP. The economy expanded by 0.3% y/y, marking twice as weak a result as expected. On a quarterly basis, the GDP decreased by 0.1% against the expected zero value and economic growth of 0.2% in the previous quarter.

From a global perspective, the data is negative. The UK economic slowdown is caused by low consumer spending amid aggressive inflation and long-term Brexit consequences.

The UK retail sales in November rose by 1.3% m/m, giving perhaps the first optimistic signal in this sector.