British pound on session high versus US dollar

GBP/USD pair reached session high versus US dollar during Thursday trade, after official GDP data from United Kingdom.

The cross hit 1.5076 during European trade session, highest for today, after which consolidated at levels around 1.5070. Support was expected at 1.5012, lowest value for current session, while the pair was to meet resistance at 1.5100.

Minutes ago it was announced that British Preliminary Gross Domestic Product (GDP) increased by 0.3% during Q1, compared to Q4 2012, in consonance with forecasts, and matching the increase rate during the previous period.

Annually, GDP rose by 0.6% during Q1, again matching forecasts and the previous period reading of this indicator.

It turned out that UK households spending rose at the slowest rate during the last 18 months, regardless of the slight increase in labour costs during the same period. British people tended not to spend in current economic situation of uncertainty. Consumer spending gives 60% of GDP in UK, as weaker indicator figures would cause negative influence on economic growth.

Additionally, British companies also abstain from spending, as UK Total Business Investment declined during Q1 by 0.4%, compared to Q4 2012. Annually, this indicator slowed to 0.7% during Q1, compared to 0.8% during preceding period.

US dollar remained broadly expansive after FED Chairman Ben Bernanke said on Wednesday that the bank could begin tapering its asset purchasing program in the next meetings, depending on economic conditions.

Yesterday US dollar sunk against most major currencies on Bernankes remarks that premature tightening of FEDs current policy could bring considerable risks to recovery.

Meanwhile, EUR/GBP added 0.07% to 0.8548.