• UK GDP arrived at 0.3% MoM in January vs. 0.1% expected.
• GBP/USD extends gains to near 1.1950 on upbeat UK GDP.

The UK Gross Domestic Product (GDP) monthly release showed on Friday that the economy expanded in January, arriving at 0.3 % vs. 0.1% expectations and -0.5% previous.

Meanwhile, the Index of services (January) came in at 0% 3M/3M vs. 0.1% estimate and 0% prior.

Commenting on the GDP data, UK Finance Minister Jeremy Hunt said, “the UK economy has proved more resilient than many expected, but there is a long way to go.”

Market reaction                                                         

The Cable picked up fresh bids on the upbeat UK growth numbers. At the press time, the spot is trading 0.17% higher on the day at 1.1944, having briefly recaptured 1.1950 on the data release.

About UK GDP

The Gross Domestic Product released by the National Statistics is a measure of the total value of all goods and services produced by the UK. The GDP is considered a broad measure of the UK economic activity. Generally speaking, a rising trend has a positive effect on the GBP, while a falling trend is seen as negative (or bearish).