Investing.com | Feb 11, 2019 10:18
Investing.com - The British pound fell to the lows of the day on Monday after data showing that Britain’s economy slowed sharply in the final three months of 2018 amid concerns about the impact of Brexit.
GBP/USD was down 0.36% to 1.2899 by 05:03 AM ET (10:03 AM GMT) from around 1.2931 earlier.
The Office for National Statistics reported that the quarterly rate of growth slowed to 0.2% in the three months to December from 0.6% in the previous quarter. This was below forecasts of 0.3% and slightly weaker than the Bank of England estimated last week.
"GDP slowed in the last three months of the year with the manufacturing of cars and steel products seeing steep falls and construction also declining," ONS statistician Rob Kent-Smith said.
For 2018 as a whole, growth dropped to its lowest since 2012 at 1.4%, from 1.8% in 2017.
Exports were hit by global weakness and consumers and businesses grew increasingly concerned about the lack of a plan for when Britain is due to leave the European Union on March 29.
Last week the BoE cut its forecast for growth this year to 1.2%, which would be the weakest since the 2009 recession.
In December alone, the economy contracted by 0.4%, the largest drop since March 2016.
With less than seven weeks before the Brexit deadline, British Prime Minister Theresa May has failed to win parliament's backing for the withdrawal agreement she agreed with Brussels.
The euro rose to the day’s highs against sterling, with EUR/GBP adding on 0.21% to trade at 0.8761.
-- Reuters contributed to this report
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.