Sterling Is Off After Weaker Than Expected GDP Data (FXB)

The pound and the British Pound Currency Trust sold off after a weaker than expected GDP report.

The UK economy emerged from six quarters of recession in Q409 but just barely. UK GDP rose 0.1% q/q (0.4% expected) and given that not all the hard data are in, there is a risk the data could be revised lower (or higher).

Details suggest the softer than expected report stemmed from gas and electricity use. The data sent sterling down over a big figure and triggered a rally in short sterling interest rate futures.