Pound Suffers on U.K.’s Recession Numbers

The pound declined today versus the euro and the U.S. dollar as the Great Britain did not manage to find its way out of recession like multiple wealthy nations around the world already did, shunning investors from pound-priced assets in currency and equities markets.
U.K.’s Office for National Statistics published today its final gross domestic product figures for this year’s third quarter, showing a decline of 0.2 percent for the kingdom’s economy, a more negative number than economists forecast, expecting a 0.1 percent contraction, forcing the pound further down versus most of the 16 main traded currencies in this European afternoon trading session, as the resilience expected by investors regarding the British economy has not been confirmed so far. The dollar has been one of the best performers versus the pound today, specially after yesterday, since for the first time in months, it advanced in correlation with stocks, evidencing a sentiment shift towards the U.S. economy and its currency.
The British economy remains frustrating, it affects the pound directly, according to analysts. As long as the economy in the nation doesn’t catch up with its Eurozone top performing neighbors like Germany and France, the U.K. currency will remain bearish.
GBP/USD traded at 1.5984 as of 13:09 GMT from a previous rate of 1.6071 yesterday. EUR/GBP traded at 0.8929 from 0.8895.

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