Brexit has finally begun to have a direct impact on Britain's economy. UK Gross Domestic Product continues to show slow growth patterns on an annual basis.
At second reading the increase in the economy in the first three months of the year is 0.1% compared to the previous quarter. This is the weakest growth since the end of 2012, when the country's economy shrunk by 0.1%. On an annual basis there is also no change - 1.2%. The pounds reported a significant decline and, as far as investors are concerned, what they expect to see is improving economic data after the weak first quarter of 2018.
If there is a breakthrough in retail sales, it will support pounds and raise expectations that the British Central Bank may raise interest rates in August. Currently, market participants weigh the probability of Bank of England's interest rate increase to 51% in August. For comparison, before the last meeting of the bank this percentage was 62%.
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