Pound Slides after GDP Data

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The Pound Sterling continued to slide on the latest data which indicated that the British economy slowed last year, to a degree not seen in seven years. Analysts say that both consumers and businesses in the UK are very concerned about the repercussions of the imminent Brexit, and that is being reflected in the growth figures. Most telling is the decline in the month-to-month activity, with GDP falling in December by 0.4%, after two consecutive months of 0.2% growth. Preliminary quarterly figures were as expected at 0.2%, down from 0.4%, while annual figures showed a decline to 1.3% from 1.5%, against forecasts of of 1.4%.

As reported at 11:28 am (GMT) in London, the GBP/USD was trading at $1.2929, down 0.06%; the pair has ranged from a session trough of $1.2894 while the high was recorded at $1.2948. The EUR/GBP was up 0.03% and trading at 0.8754 Pence; earlier, the pair had hit a peak of 0.87742 Pence while the low was at 0.87404 Pence.

Brexit Still Weighs

Analysts see the Pound continuing to slump in the run up to the March 29th Brexit deadline. The Prime Minister has not been able to secure an agreement with the EU, and in-fighting with members of her own political party is also weighing heavily on the Pound and driving jitters higher. The uncertainty of the outcome last week led the UK's central bank to lower growth forecasts.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.