We know the British economy took a hit in January because the services PMI reading slumped to 39.5, an eight month low, also, the retail sales reading fell off a cliff as the level was -8.2%, a nine month low. In the final quarter of 2020, the UK economy grew by 1%, ahead of the 0.5% consensus estimate.
Today’s growth update will have traders wondering whether the first quarter GDP report will be positive or negative. Even if the reading is very disappointing, it might not hurt sterling too much as the UK’s vaccination distribution scheme is one of the best in the world. Hopes for the economy re-opening in the months ahead takes precedence over January’s GDP numbers.