Pound Rises 0.5% as UK August GDP Unexpectedly Grows 0.1%
Updated
Updated · Reuters · Oct 15
Pound Rises 0.5% as UK August GDP Unexpectedly Grows 0.1%
3 articles · Updated · Reuters · Oct 15
Summary
Sterling climbed 0.5% to $1.3253, putting it on track for its biggest daily gain against the dollar since mid-August after UK data showed August GDP rose 0.1% instead of the 0.1% fall economists expected.
A 0.15% drop in the dollar added to the move, as lower US Treasury yields and stock-market jitters pushed investors toward a risk-off stance; sterling was little changed against the euro at 84.60 pence.
Office for National Statistics data pointed to another jump in computer programming, reinforcing signs that AI-related activity is supporting growth even as some sectors weaken.
John Healey said this month's budget will include measures to cushion the Iran war energy shock while meeting fiscal rules, as markets still price at least one 25-basis-point Bank of England rate increase by year-end.