UK GDP expands 0.2% MoM in January, as expected

• UK GDP rebounded 0.2% MoM in January vs. 0.2% forecast.
• GBP/USD remains unfazed below 1.2800 after the UK data.

The UK economy returned to expansion in January, rising 0.2% after contracting 0.1% in December, the latest data published by the Office for National Statistics (ONS) showed on Wednesday. The market expectations were for an expansion of 0.2% in the reported period.

Meanwhile, the Index of services (January) arrived at 0% 3M/3M vs. December’s 0.8% reading and 0% expectations.

Other data from the UK showed that Industrial Production and Manufacturing Production arrived at -0.2% and 0%, respectively, on a monthly basis in December.

Separately, the UK Goods Trade Balance came in at GBP-14.515 billion MoM in January vs. GBP-15B expected and GBP-13.989B previous.

Market reaction to the UK data

The Pound Sterling remained little impressed by the mixed UK economic data, keeping GBP/USD in a tight range below 1.2800.

At the press time, GBP/USD is trading 0.03% higher on the day at 1.2793.

(This story was corrected on Wednesday at 07.11 GMT to say that "the latest data published by the Office for National Statistics (ONS) showed on Wednesday," not Friday.)