All eyes were on the final Q2 GDP reading but it seems the better current account data has grabbed the attention
Ryan had all the detail here but worth highlighting again the Q2 current account deficit improving to -£16.7bln from -£22.25bln prev
GBPUSD fell to test the strong demand around 1.5130 again as per my preview but has since bounced to post 1.5185 as EURGBP gives up its defence of 0.7400 to test the next line of bids/support at 0.7385
The ONS had this to say on the current account/balance of payments
- The United Kingdom's (UK) current account deficit was £16.8 billion in Quarter 2 (April to June) 2015, down from a revised deficit of £24.0 billion in Quarter 1 (Jan to Mar) 2015. The deficit in Quarter 2 (April to June) 2015 equated to 3.6% of gross domestic product (GDP) at current market prices, down from 5.2% in Quarter 1 (Jan to Mar) 2015.
- The narrowing of the current account deficit was mainly due to a narrowing in the deficit on the trade account and a small narrowing in the deficit on the primary income account, slightly offset by a small widening in the deficit on the secondary income account.
- The trade deficit narrowed to £3.5 billion in Quarter 2 (April to June) 2015, from £10.5 billion in Quarter 1 (Jan to Mar) 2015. This was primarily due to a narrowing in the trade in goods deficit as exports rose by £4.5 billion and imports fell by £3.2 billion.
- The deficit on secondary income widened by £0.9 billion, from £5.5 billion in Quarter 1 (Jan to Mar) 2015 to £6.4 billion in Quarter 2 (April to June) 2015. This was due to a small decrease in receipts and an increase in payments.
More from the ONS here
