Sterling edges lower after record GDP fails to impress

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LONDON – The pound edged lower and was on course for its worst week versus the euro, with analysts saying data showing Britain’s recovery from the COVID-19 pandemic sped up in April was slightly disappointing. Britain’s GDP was a record 27.6% higher than a year earlier when the virus was rampant. But economic output remained 3.7% below its level in February 2020, before the pandemic led to lockdown measures.

Sterling fell 0.1% to 85.97 pence at 0830 GMT and was on course for its worst week versus the single currency since late April. Versus the dollar, it was also down 0.1% to $1.4154, after falling to a one-month low of $1.4071 on Thursday. “UK GDP data release this morning, while strong, did not quite meet market expectations. Also, reports that the re-opening of the economy could be delayed beyond June 21 should limit enthusiasm for GBP versus the euro,” said Jane Foley, Head of FX Strategy at Rabobank. Prime more...