UK GDP contracts 0.6% in 3rd Quarter. Pound falls in Forex Trading. | CountingPips Forex Blog

December 23, 2008 - Forex Economic News

UK GDP contracts 0.6% in 3rd Quarter. Pound falls in Forex Trading.

The U.K. Gross Domestic Product fell by 0.6 percent in the third quarter according to the latest data released by the Office of National Statistics today. The third quarter GDP was revised lower from previous estimates of a 0.5 percent decline released in October and November. The third quarter decline follows no change or 0.0 percent growth in the second British Pound falls in Forex Trading quarter. On an annual basis, the third quarter GDP increased by 0.3 percent over the third quarter of 2007. Market forecasts were expecting the GDP growth to equal prior estimates at a 0.5 percent contraction.

Contributing to the contraction in GDP was a decline of total production output in the third quarter by 1.4 percent. Production output had fallen by 0.9 percent in the second quarter. Service sector output fell by 0.5 percent in the third quarter following a decline of 0.2 percent in the second quarter. Today's report also showed that household spending declined by 0.2 percent for the third quarter in the UK.

British Pound declines in forex trading.

The British pound has been trading lower in the forex markets against the major currencies today. The pound is trading at the 1.4722 level verses the US dollar in the US trading session at 11:13am ET after touching below the 1.4700 level. The GBP/USD opened the day trading at the 1.4831.

The pound is also falling against the Japanese yen today as the GBP/JPY is trading at approximately 133.26 after opening the day at 133.87 yen per pound.

The euro is also gaining today against the pound as the EUR/GBP is trading at 0.9486 after opening at 0.9426. The euro is threatening to eclipse the recent record high it has established against the pound. Last week, the euro set a new all time high exchange rate verses the pound at 0.9557 pence per euro and is on its way to a possible parity between the currencies.

EUR/GBP Chart - The Euro advancing today verses the British Pound in forex trading(Daily Chart). Will the Euro break through its recent record high and continue on to parity verses the pound?

Today's Forex Chart

tags: uk gdp, uk economy, british pound, gbp, forex

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