Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Sterling slips after record UK GDP fails to impress

06/11/2021 | 07:14am EDT
A British Pound banknote is seen in front of displayed stock graph in this illustration

* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv

LONDON, June 11 (Reuters) - The pound edged lower and was on track for the second consecutive weekly loss versus the dollar with analysts saying data showing Britain's recovery from the pandemic sped up in April slightly undershot market expectations.

Britain's GDP was a record 27.6% higher than a year earlier when the virus was rampant. But economic output remained 3.7% below its level in February 2020, before the pandemic led to lockdown measures.

Against the dollar, sterling was down 0.1% to $1.4163 at 1108 GMT, after falling to a one-month low of $1.4071 on Thursday. It was 0.1% higher also versus the euro at 85.76 pence, at a one week high.

"UK GDP data release this morning, while strong, did not quite meet market expectations. Also, reports that the re-opening of the economy could be delayed beyond June 21 should limit enthusiasm for GBP versus the euro," said Jane Foley, Head of FX Strategy at Rabobank.

England was set to fully lift lockdown restrictions on June 21, helped by a swift vaccine roll-out that has brightened Britain's economic outlook. But with the Delta variant of COVID-19 first detected in India spreading fast, Prime Minister Boris Johnson is expected to decide on Monday whether to delay the reopening.

Sterling was under pressure this week after Britain and the European Union failed to agree on solutions to post-Brexit trade problems in Northern Ireland.

It won back a little ground on Thursday as investors expected the Federal Reserve to keep its policy unchanged even after data showed U.S. consumer prices climbed; while the European Central Bank maintained an elevated flow of stimulus as expected.

Sterling has also found some support from U.S. President Joe Biden's key messages to Britain in his first meeting with Johnson, Rabobank's Foley also said.

They "were more about the special relationship between the U.S. and the UK and less about issues related to the N. Ireland protocol," she said.

Biden and Johnson met in Cornwall, southwest England, before the start of the G7 Summit on Friday.

(Reporting by Joice Alves; Editing by Giles Elgood and Emelia Sithole-Matarise)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / EURO (AUD/EUR) -0.54% 0.6308 Delayed Quote.0.70%
BRITISH POUND / EURO (GBP/EUR) -0.53% 1.1636 Delayed Quote.4.55%
BRITISH POUND / US DOLLAR (GBP/USD) -0.96% 1.38032 Delayed Quote.1.93%
CANADIAN DOLLAR / EURO (CAD/EUR) 0.00% 0.676311 Delayed Quote.5.67%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) 0.00% 0.8015 Delayed Quote.3.16%
EURO / BRITISH POUND (EUR/GBP) 0.50% 0.85902 Delayed Quote.-4.33%
EURO / US DOLLAR (EUR/USD) -0.45% 1.18592 Delayed Quote.-2.47%
IMPRESS HOLDINGS, INC. -2.49% 196 End-of-day quote.16.67%
INDIAN RUPEE / EURO (INR/EUR) 0.42% 0.011415 Delayed Quote.1.03%
INDIAN RUPEE / US DOLLAR (INR/USD) 0.00% 0.013488 Delayed Quote.-1.50%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) -1.16% 0.6933 Delayed Quote.-2.33%
US DOLLAR / EURO (USD/EUR) 0.45% 0.843227 Delayed Quote.2.53%
Latest news "Economy & Forex"
05:45aCENTRAL PEOPLE GOVERNMENT OF PEOPLE REá : China allocates more funds to boost inclusive finance in 2021
PU
04:26aIran's foreign minister says Raisi is new elected president
RE
04:23aPREMIER OF GOVERNMENT OF PEOPLE REPUBLICá : 2021/06/19Farmers' interests to be safeguarded
PU
04:16aAlert declaring Raisi winner of Iran election, citing ministry, is withdrawn
RE
04:15aAlert declaring Raisi winner of Iran election, citing ministry, is withdrawn
RE
04:01aEUROPEAN EXTERNAL ACTION SERVICEá : High Representative/Vice-President Josep Borrell concludes participation in the SEECP Summit and the Antalya Diplomatic Forum in Turkey
PU
03:49aGOVERNMENT OF RUSSIAN FEDERATIONá : Russia resumes flights with Belgium, Bulgaria, Jordan, Ireland, Italy, Cyprus, North Macedonia, the United States and Turkey
PU
03:19aWORLD BANKá : Nepal Receives 982 Oxygen Concentrators towards a Stronger Response to Pandemic
PU
02:53aEESC EUROPEAN ECONOMIC AND SOCIAL COMMITTEEá : Last call to submit your project for the EESC's 2021 Civil Society Prize on climate action
PU
02:40aHardline judge has big lead in Iran presidential vote, says state TV
RE
Latest news "Economy & Forex"