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Sterling drops after UK economy contracts by more than expected
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LONDON (Reuters) – The British pound declined against the dollar and euro on Wednesday after data showed British economic output contracted by more than expected in July.
LONDON (Reuters) – The British pound declined against the dollar and euro on Wednesday after data showed British economic output contracted by more than expected in July.
Sterling was last down 0.3% against the dollar at $1.2459, on track for its biggest daily drop in a week.
The euro rose 0.1% against the pound to 86.24 pence, its highest level in a month.
The UK economy contracted by 0.5% in July, the Office for National Statistics said, worse than expected contraction of 0.2% and the largest drop in monthly output since Dec. 2022.
(Reporting by Samuel Indyk; Editing by Amanda Cooper)
Foreign currency refers to any currency that is not the domestic currency of a country. It is used in international trade and investment.
Financial markets are platforms where buyers and sellers engage in trading financial assets such as stocks, bonds, currencies, and derivatives.
Economic contraction is a decline in national output as measured by GDP, indicating a slowdown in economic activity.
Exchange rates are the values at which one currency can be exchanged for another, reflecting the relative strength of currencies in the foreign exchange market.
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