RTTN:Pound Falls Further Against Dollar And Yen Despite Upbeat U.K. Q3 GDP
(RTTNews) - The pound has been extending its slide against the dollar and the yen in the European session on Tuesday despite an upbeat third quarter U.K. GDP report released at 5:30 am ET.
Meanwhile, the pound pulled back from a fresh 4-week high against the euro and a 12-day high against the franc.
Data released by the Office for National Statistics showed that the U.K. Gross domestic product increased 0.5 percent quarter-on-quarter, much faster than the 0.1 percent growth logged in the previous quarter. The sequential growth exceeded the 0.3 percent growth forecast.
GDP increased by 0.5 percent in the third quarter compared with the same period of last year, which was also slightly bigger the 0.4 percent rise expected by economists.
At the same time, data released by Markit Economics showed that manufacturing sector in the United Kingdom contracted in October, after an expansion in the previous month.
The Markit/CIPS UK Manufacturing Purchasing Managers' Index for the factory sector fell to 47.4 from September's downwardly revised 50.8. The latest PMI figure was the lowest since June 2009. Economists had forecast the index to show a reading of 50.
The pound is currently trading at 124.55 against the yen and a 6-day low of 1.5936 against the dollar.
Against the euro and the franc, the pound is now worth 0.8615 and 1.4155, respectively.
