British Pound Gains Ground Amid US Dollar Weakness
The British pound is recovering some of the losses against the US dollar today, jumping by 0.29% to 1.4059. Yesterday, the GBP/USD fell to more than 1-week low, which was due to the strength of the US currency. In addition, investors analyzed the UK statistical data, namely, on the balance of payments and gross domestic product. Britain’s current account deficit narrowed to GBP 18.4 billion in the fourth quarter.
The UK Office for National Statistics (ONS) said that Britain's GDP grew by 0.4% in Q4 compared to the previous quarter, which was lower than the growth of 0.5% in the previous period. The ONS also confirmed annual growth of 1.4%in the fourth quarter. GDP growth for 2017 was slightly revised to 1.8% from 1.7%. However, this was slightly weaker than the 1.9% growth in 2016. Household expenses increased by 1.7% in the fourth quarter, which is the lowest since 2011.
Britain and the EU have recently agreed to a transition phase in the Brexit process. In particular, the business sector will have to adapt to the new reality of post-Brexit. The British economy has performed better than most had expected, with the uncertainty over Britain’s departure from the European Union in March 2019.