UK GDP Beats Expectations as Markets Eye US Jobs

UK GDP growth surprises with fourth consecutive monthly rise as traders monitor US jobs data and central bank speeches.

EUROPEAN SESSION

The UK GDP report dominated the European session, delivering an encouraging surprise. Britain’s economy recorded a fourth consecutive monthly rise in services output — a streak that marks a noteworthy milestone. Moreover, the growth spread broadly, with 12 of the 14 subsectors reporting higher levels of activity, signalling that the recovery is not concentrated in just one area.

Despite those promising figures, markets responded with caution. The data precedes the US-Iran conflict, which continues to weigh on investor sentiment and overshadow domestic economic releases.

Meanwhile, the final Eurozone CPI reading for March is also due. However, that release is unlikely to shift the ECB’s stance in the near term. The central bank is still gathering sufficient evidence before committing to a decision on whether to raise rates further.

UK GDP Beats Expectations as Markets Eye US Jobs

AMERICAN SESSION

Turning to the American session, traders will closely watch the latest US Jobless Claims figures. Economists expect Initial Claims to come in at 213K, down from the previous reading of 219K. Continuing Claims, meanwhile, are forecast at 1,810K, compared to 1,794K prior. Taken together, the US labour market continues to demonstrate resilience, and the trend points toward steady improvement — a broadly positive signal for economic growth.

That said, if the data surprises significantly to the upside and wage growth accelerates, the Federal Reserve could eventually reconsider its stance. Even if oil prices pull back from their currently elevated levels, the Fed may feel pressure to hike rates. After all, inflation has remained above the 2% target continuously since 2021, leaving the central bank with limited room to ignore persistent price pressures.

CENTRAL BANK SPEAKERS SCHEDULE

Stay Updated with the Latest Market News. Visit our YouTube Channel for the Latest Forex Analysis.