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Pound Sterling (GBP) Slides as UK Annual Growth Falls to Six-Year Low

Published: 11 Feb at 4 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China,

Pound Sterling (GBP) Slides as UK Annual Growth Hits Six-Year Low

This morning saw a slew of disappointing economic releases for the Pound, including data showing that UK annual growth had hit a six-year low in 2018 as the economy only expanded by 1.4%.

All main sectors of the UK economy shrank and the manufacturing sector contracted for the sixth month in a row, thus falling into a recession, which further dampened sentiment in Sterling.

Pound Sterling Euro (GBP/EUR) Exchange Rate Slides despite ‘Temporary’ Eurozone Slowdown

The Pound Sterling Euro (GBP/EUR) exchange rate slipped as the session progressed into the afternoon.

At today’s Eurogroup meeting, Mario Centeno, Chairman of Eurozone Finance Ministers, told reporters that the slowdown in the Eurozone was due to political factors, saying:

‘We know there is a temporary slowdown in our economies. We also know that most of the risks, as the Commission pointed out, are political risks, which call for us politicians to act.’

Pound Sterling US Dollar (GBP/USD) Exchange Rate Slips Following Heightened Global Risk Sentiment

The Pound US Dollar (GBP/USD) exchange rate slid over the course of the morning into the afternoon, as the US Dollar benefitted from continuing US-China jitters.

This was due to fears that the trade discussions in Beijing this week would not gain any significant results following reports last week that the US and China had not even put together a draft agreement.

Pound Sterling Canadian Dollar (GBP/CAD) Exchange Rate Slides despite US-China Trade Talks

The Pound Canadian Dollar (GBP/CAD) exchange rate fell over the course of the morning, after the poor UK GDP figures and increased global risk sentiment due to the US-China talks.

As there is a suggestion that the US and China are going to make little progress, especially due to the statement last week from US President Donald Trump, who stated that he would not be meeting his Chinese counterpart, Xi Jinping prior to the 1 March deadline.

Pound Sterling Australian Dollar (GBP/AUD) Exchange Rate Fluctuates as US-China Trade Talks Deadline Looms

The Pound Australian Dollar (GBP/AUD) exchange rate has fluctuated over the course of the day as Monday saw Chinese markets reopen after the Lunar New Year.

Increased trade talk tensions between the US and China caused the risk-sensitive AUD to fall, as the assumption remains that there will be little progress made between the two as the 1 March deadline looms closer.

Pound Sterling New Zealand Dollar (GBP/NZD) Exchange Rate Fluctuates on US-China Tensions and UK GDP

The Pound New Zealand Dollar (GBP/NZD) Exchange Rate fluctuated throughout the day, slipping overnight as US officials headed to Beijing for US-China trade talks.

The pairing fluctuated over the course of the day, likely due to disappointing UK data releases, and heightened global risk sentiment.

As of Monday, 11th February 2019, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1405, GBP USD exchange rate was 1.2862, GBP AUD exchange rate was 1.8215, GBP NZD exchange rate was 1.9102, GBP CAD exchange rate was 1.7113, and GBP CNY exchange rate was 8.7366.
Dominic Lee About Author: (474 Posts)With over ten years experience as an economist – including four years spent as a chief economist with a major currency broker – Dominic has acquired a wealth of knowledge which he uses to forecast market movements. Dominic now works as an independent business advisor and writes for several financial publications.

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