The Pound hits reverse, with disappointing economic data sounding the alarm bells as the Bank of England grapples with inflation.
It was a busy morning on the UK economic calendar. Q1 GDP and industrial and manufacturing Production figures drew attention.
Disappointing numbers weighed on the Pound ahead of the UK open.
In the first quarter, the UK economy grew by 0.8% quarter-on-quarter versus a forecasted 1.00%. The economy expanded by 1.3% in the previous quarter.
Year-on-year, the economy grew by 8.7% versus a forecasted 9.0%. The economy expanded by 6.6% in the fourth quarter of last year.
In March, the economy contracted by 0.1% after no growth in February.
According to the Office for National Statistics,
Ahead of today’s stats, the Pound struck a current-day high of $1.22596 before hitting reverse.
In response to today’s stats, the Pound slid to a current-day low of $1.21807.
At the time of writing, the Pound was down by 0.53% to $1.21873.
Looking at the Futures, the FTSE100 was down 164 points, with the European bourses and US majors also set for a bearish open.
NIESR GDP estimate for the UK are due out later, ahead of US wholesale inflation and jobless claim figures.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.