The pound posted losses today versus most of the 16 main traded currencies as today, gross domestic product figures released in the United Kingdom revealed that the quarterly recession in the European nation was more than double of what economists forecast.
The United Kingdoms Office for National Statistics posted a GDP report today that indicated a contraction of 0.8 in the British economy, which is more than double of what most of economists suggested, raising concerns that the recession in the country will be deeper and longer than what predictions assumed, reflecting directly in the attractiveness of the national currency. The British economy is having its worst 12-month period since the second world war, as a credit crunch struck nations economy, followed by political crisis in the parliament, and a severe devaluation of the pound versus main currencies like the euro and the dollar. Todays figures suggest that the situation will remain grim in the economic sphere for the United Kingdom.
Surprised economists affirm that even if they were expecting negative figures for the quarterly gross product in the U.K., the actual numbers were more than disappointing, raising immediate concerns about the British economic situation, damping demand for the pound and influencing negatively in British equity markets.
EUR/GBP traded at 0.8652 as of 12:30 GMT from 0.8610 yesterday. GBP/USD traded at 1.6460 from 1.6515 in the intraday comparison.
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