• UK GDP rate rose 0.2% MoM in August vs. 0.2% expected.
• GBP/USD keeps gains above 1.2300 on as expected UK GDP data.

The official data published by the Office for National Statistics (ONS) showed on Thursday that the UK economy returned to expansion, registering a growth of 0.2% in August after shrinking 0.6% (revised from -0.5%) in July. The market had anticipated an expansion of 0.2% in the reported period.

Meanwhile, the Index of services (August) arrived at 0.1% 3M/3M vs. 0.1% expected and -0.1% previous.

Market reaction                                                         

GBP/USD  is holding gains on the UK GDP data release. At the press time, the pair is up 0.11% on the day to trade at 1.2322, awaiting the US inflation data for further trading impetus.

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).