Sterling dips after data shows surprise drop in UK GDP

LONDON, ‌Dec 12 (Reuters) - The pound dipped on ‍Friday ‌after data showed the UK economy unexpectedly ⁠shrank in the ‌three months to October. 

Economic activity fell by 0.1% between August and October, while falling 0.1% ⁠in October alone, according to data from the ​Office for National Statistics. A Reuters ‌poll had offered ⁠a forecast for no growth in that time.

Sterling was last at $1.338, a fraction ​softer on the day near session lows, while weakening against the euro, which was at 87.72 pence.

The pound was ​still ‍headed for ​a rise of 0.36% this week, having hit a two-month high on Thursday. It was also set for a third successive weekly gain, largely as investors have ⁠sold the dollar on expectations of further Federal Reserve easing ​next year. [FRX/]

The Bank of England meets next week to decide monetary policy. Markets currently attach a 90% ‌chance of a drop in borrowing costs. 

(Reporting by Amanda Cooper; Editing by Alun John)