The National Institute of Economic and Social Research said Britain will lose 1/4 of its output in Q2. GDP is expected to fall by -20% to -25% in Q2, a significantly steeper decline than Q1, reflecting the full impact of the lockdown policy.
The decline in income is not balanced with spending during the pandemic and lockdown, because of the collapse and closure of business activities to reduce transmission of the virus. The UK is expected to lose around a quarter of GDP due to the lockdown. The latest ONS forecasts represent a record monthly decline in UK GDP, where almost all sectors experienced a decline.
Source: Monthly GDP Tracker – UK Set to Lose a Quarter of Output in Q2
The latest survey shows a decrease in the rate of contraction in the manufacturing and service sectors, and the economy seems to have reached a low point. The reopening of June 15, coupled with ongoing support from the government, will help a gradual, albeit limited, recovery in domestic activities.
Cable declined to S1 at 1.2456 this morning before recovering 1.2500 to trade at 1.2525 currently. The daily pivot and upper Bollinger band sits at 1.2555 and the 200-hr moving average and R1 are at 1.2625.
Click here to access the HotForex Economic Calendar
Ady Phangestu
HFI Indonesia Market Analyst
Disclaimer:This material is provided as general marketing communication with the aim of information only and not as independent investment research. This communication does not contain investment advice or recommendations or requests for the purpose of buying or selling any financial instrument. All information presented is from trusted, reputable sources. All information that contains indications of past performance is not a guarantee or a reliable indicator of future performance. The user must realize that all investments in Products with Leverage have a certain degree of uncertainty and that all investments of this kind involve a high level of risk for which the obligations and responsibilities are solely borne by the user. We are not responsible for losses arising from any investment made based on information provided in this communication. Reproduction or further distribution of this communication is prohibited without our prior written permission.
