Market News
Sterling edges down versus dollar after UK data - REUTERS
Jan 15 (Reuters) - Sterling slightly pared its fall against the dollar on Thursday after UK economic data showed the economy grew more strongly than expected in November, but failed to affect the policy rate outlook.
Traders priced in around 40 basis points (bps) of Bank of England rate cuts by September.
The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here.
UK gross domestic product recorded the fastest growth since June, boosted by a return to full production at Jaguar Land Rover after a cyberattack which hit the carmaker and its suppliers.
“Despite the upside surprise, it is important to note that the data are by no means strong,” said Kallum Pickering, chief economist at Peel Hunt.
“Economic activity in the UK is, at best, lukewarm, lumpy and remains constrained mostly by a lack of confidence in the policy decisions of the Labour government.”
The pound was down 0.05% at $1.3443 , while it was falling by around 0.10% before data.
The dollar rose as markets set aside concerns about the Federal Reserve's independence and shifted their focus to economic data.
