British Pound Weakens as Growth Appears to be Slowing

The pound ends a two-week losing streak falling to US$1.5440 as evidence mounts that the British economy is slowing. The Office for National Statistics said gross domestic product rose 0.7 percent in the three months to September, below the initial estimate of 0.8 percent announced in October. Second-quarter growth was revised lower to 1.1 percent from 1.2 percent. The budget deficit swelled to a record and home-loan approvals dropped to the lowest since March 2009.

“It hasn’t been the best run of data in the course of the last few sessions and sterling is looking a little softer,” said Jeremy Stretch, executive director of foreign-exchange strategy at Canadian Imperial Bank of Commerce in London. “The GDP data has been slightly disappointing, and it doesn’t provide a huge amount of positivity to take into the end of the year.”

Source: Bloomberg

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