Pound Retreats as GDP Misses Forecasts

The Great Britain pound retreated today against the US dollar and erased previous gains versus the Japanese yen as Britain’s economy expanded last quarter slower than was previously estimated.

Month-on-month, gross domestic product rose 0.7 percent in the second quarter of 2013, the same as the preliminary reading, after expanding 0.4 percent in the first quarter. Yet the annual increase was at 1.3 percent, down from the previous estimate of 1.5 percent. It is rare nowadays that UK data disappoints as usually it is positive and supports the currency.

GBP/USD was down from 1.6079 to 1.6051 as of 10:14 GMT today. GBP/JPY traded near 158.16 following the rise from 158.26 to 159.24.

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