Pound Falls as Current-Account Deficit Widens

The Great Britain pound dropped today as the current account deficit widened unexpectedly last quarter, leading to concerns about sustainability of economic growth.

UK economic growth remained unrevised in the final estimate, showing 0.3 percent increase in the first quarter of 2013 after the contraction by 0.2 percent in the preceding quarter. Yet the current account showed a deficit of £14.5 billion in Q1 2013. It was above £13.6 billion in Q4 2012 and the forecast £11.9 billion.

GBP/USD fell from 1.5309 to 1.5267 and EUR/GBP rose from 0.8494 to 0.8543 as of 13:57 GMT today.

 

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