Sterling Falls Following Poor UK GDP
Friday 8th August 2019 – 09:40am (BST)
Figures just released by the Office for National Statistics (ONS) have shown the UK economy shrunk by 0.2% over Q2 2019. This was the UK’s first quarterly GDP contraction since 2012 and has seen the pound begin to test the $1.20 and €1.08 support levels.
This tops-off a week where sterling hit 2-year lows against the Euro following rumours that the new Prime Minister, Boris Johnson, was preparing to hold an election soon after the October 31st deadline for the UK to leave the European Union. This, combined with a reduction in growth forecasts by the Bank of England, has seen the pound tumble.