The Great Britain pound retreated today as the government report showed Britain’s economy grew with slower pace than was previously estimated, fueling concerns the UK isn’t able to survive without additional stimulus.
The growth of Britain’s gross domestic product in the first quarter was revised from 0.2 percent to 0.1 percent. The growth in the second quarter was also revised down, 0.4 percent instead of previously estimated 0.5 percent. The Markit/CIPS UK Services PMI rose to 52.9 in September from 51.1 on the prior month instead of declining as was expected. Yet the rates of growth remained below trend and the business confidence continued to worsen. The overall weak state of the UK economy made market analysts believe the Bank of England will go for the next round of quantitative easing.
GBP/USD fell from 1.5486 to 1.5452 as of 12:08 GMT and touched the intraday low of 1.5410 earlier. GBP/JPY retreated from 118.90 to 118.40, while the daily low for this currency pair today was 118.05.
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