UK Pound Drops on Latest GDP Data

UK pound is lower against the euro today, thanks in large part to the latest GDP data. Sterling hasn’t changed much against the US dollar, and is higher against the Japanese yen.

Sterling is struggling today as the latest GDP data has been released. The Office for National Statistics reports that second quarter GDP for the United Kingdom expanded at a rate of 0.6 per cent. This was in line with some estimates, but it did put a damper on expectations of changes to the Bank of England’s current bond buying program.

With interest rates expected to remain low for a long time, and with the asset purchase program likely to remain in place for a significant period of time, the pound is expected to remain weak. With no signs of solid economic improvement, the pound will continue to struggle.

Even so, many Forex traders are looking forward to the next Bank of England meeting on August 1. Many expect that Mark Carney will share more information on economic analysis, and what to expect for the pound going forward.

At 14:15 GMT EUR/GBP is up to 0.8635 from the open at 0.8619. GBP/USD is up to 1.5315 from the open at 1.5314. GBP/JPY is down to 152.7565 from the open at 153.5750.

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