Forex: GBP/USD dives to 1.5244

on Jun 27, 2013
Listen Thursday June 27th:_ Following the disappointing US current account data and the downward revision to the annual growth numbers for the first quarter of 2013, the sterling hit a more than three week low against the US dollar.

Since the Asian session started today for the pair at 1.5316 the quote has descended to a 24-day low at 1.5244, decreasing 0.76 percent so far.

Earlier today the final estimate of Britain’s GDP for the first quarter of the year was left unrevised at 0.3 percent against the annualized reading which was lowered to 0.3 percent from a previous estimate of 0.6 percent.
The disposable income of British households was down 1.7 percent in the first quarter of 2013, following a 0.1 percent rise in the prior period. The data logged the biggest drop since 1987.

Paul Robson, currencies strategist at RBS opined: “We are seeing a big reaction to U.K. data today. Soft data, including a downward revision of disposable income highlighted structural problems and sterling was sold on the back of that. Markets had already priced in the GDP data and were positioned for a first half of the year of weak growth. High frequency and short-looking data ahead remain a more important driver for the dollar”.