Pound falls after UK GDP shrinks unexpectedly
The British pound dipped on Friday after data revealed the UK economy unexpectedly contracted in the three months to October. Economic activity fell by 0.1% from August to October, with October alone also down 0.1%, according to the Office for National Statistics. Analysts had predicted no growth during this period.
Sterling traded at $1.338, slightly lower on the day, and weakened against the euro, which stood at 87.72 pence. Despite the dip, the pound is still set for a weekly gain of 0.36%, marking a third consecutive week of increases, supported by investor expectations of further Federal Reserve easing next year, News.Az reports, citing Reuters.
The Bank of England is scheduled to meet next week to decide monetary policy, with markets currently pricing in a 90% probability of a cut in borrowing costs.
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