UK: Disappointing growth numbers – BBH

According to analysts at BBH, the UK growth numbers were disappointing as most had been looking for 0.3% expansion in Q1 and the risk was understood to be on the downside, but today's 0.1% report, on the back of a contraction in services in February.

Key Quotes

“Over the past week, the odds of a BOE rate hike at the May 10 meeting has been scaled back, and it has now been largely pushed back into Q3.  This has weighed on sterling.  Since falling below $1.40 at the start of the week, it has been unable to resurface it, including the last test yesterday.  It is now testing $1.38.  A break of $1.37 could signal the completion of a double top pattern that would project toward $1.30, which is where sterling carved a base last October and November.”