Expectations regarding the UK’s fourth quarter GDP figures were low, but the actual result still managed to be worse than anticipated.
With data compiled by the Office for National Statistics revealing that the British economy shrank by more than forecast in the last quarter of 2012 the Pound is in for a difficult day.
The end of the boost inspired by the summer’s Olympic Games and plummeting gas and oil output saw GDP decline by 0.3 per cent in the three months from September, despite economists predicting a drop of 0.1 per cent.
This ‘extremely disappointing’ result has upped the likelihood of the UK plunging headlong into an unprecedented triple-dip recession, a concern which could prove highly damaging to confidence levels.
Prior to the release of these figures Chancellor of the Exchequer George Osborne came under fire from the International Monetary Fund and business executives, both of whom criticised his austerity measures, commenting that they had been ‘taken too far’.
Although today’s GDP figures are preliminary the worries they have inspired regarding the UK’s economic outlook has caused the Pound to drop against the majority of its currency rivals.
Following the report Sterling shed 0.2 per cent against the US Dollar and weakened to a 13 month low against a broadly strengthening Euro.
Earlier in the week the Bank of England asserted that the ‘persistent strength’ of the Pound could be damaging UK trade, but given Sterling’s performance so far this year that may not prove an issue for much longer.
Current GBP Exchange Rates
The Pound Sterling to Euro exchange rate is currently trading at 1.1729
The Pound Sterling to US Dollar exchange rate is currently trading at 1.5778
The Pound Sterling to Australian Dollar exchange rate is currently trading at 1.5090
The Pound Sterling to New Zealand Dollar exchange rate is currently trading at 1.8815
The Pound Sterling to Canadian Dollar exchange rate is currently trading at 1.5835
The Pound Sterling to Emirati Dirham exchange rate is currently trading at 5.7915
The Pound Sterling to Swiss Franc is currently trading at 1.4578
The Pound Sterling to Japanese Yen exchange rate is currently trading at 143.3700
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