UK Pound Gains Ground Even After Data Disappointment

UK pound is gaining ground today, even after a data disappointment. The latest GDP reading from the United Kingdom indicates that growth is moving at a slower rate than expected, and that is having an impact on the sterling. However, even with the data disappointment, the pound is still higher against its major counterparts today.

Sterling has pulled back from highs against its major counterparts today, but is still higher in this session. Ahead of UK data, the pound reached a high against the US dollar that hadn’t been seen in three years. After the data, though, the pound pulled back, but is still higher against the dollar right now.
Fourth quarter GDP data for the United Kingdom showed that there was a 0.7 per cent rate of growth for that quarter. The news was a little disappointing, but it does take a little pressure off the Bank of England. Last week, better unemployment data also boosted the pound. Between growth for the economy and a better employment situation, there are expectations that the BOE will have to limit asset purchases and perhaps even raise rates.
At 14:12 GMT GBP/USD is up to 1.6585 from the open at 1.6582. EUR/GBP is down to 0.8234 from the open at 0.8246. GBP/JPY is up to 170.5050 from the open at 170.1820.

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