Currencies
Pound Falls as Weak UK Growth Underscores Need for Rate Cuts
- UK markets remain fragile, says Danske Bank FX strategist
- Traders are fully pricing two quarter-point BOE cuts this year
While the rout eased on Wednesday after data showed consumer price growth decelerated, the outlook for the pound remains dim.
Photographer: Chris Ratcliffe/BloombergThe pound fell after data showed the UK economy grew less than economists forecast in November, underscoring the need for further interest-rate cuts to boost activity.
Sterling dropped as much as 0.6% to $1.2175 and was one of the worst performers among Group-of-10 currencies. It’s down more than 2% this year, leading losses among major peers.