Brown Brothers Harriman analyst Elias Haddad says GBP/USD is directionless
around 1.3500 after UK Q2 and June GDP showed encouraging activity, but he
expects those data are unlikely to change Bank of England rate expectations. Q2
growth was driven by gross fixed capital formation and household consumption,
while government spending was the largest drag, reflecting declines in health
and education. Haddad says inflation, not GDP, is the BoE's bigger concern and
the July CPI report due next week will be more important for policy.
