Sterling suffered across the board as disappointing economic data weighed on the demand for sterling.

The Office of National Statistics reported that the UK’s GDP was revised lower to an annual rate of 0.3% in the three months leading up to March, down from a preliminary estimate of 0.6% growth.  Also the UK’s current account deficit widened to £14.512bn from £13.617bn instead of narrowing to £11.80bn as forecasted. At the close of European trade, the pound finished 0.7% lower against the euro and 0.55% against the US dollar.

Sterling suffered across the board as disappointing economic data weighed on the demand for sterling.

The Office of National Statistics reported that the UK’s GDP was revised lower to an annual rate of 0.3% in the three months leading up to March, down from a preliminary estimate of 0.6% growth.  Also the UK’s current account deficit widened to £14.512bn from £13.617bn instead of narrowing to £11.80bn as forecasted. At the close of European trade, the pound finished 0.7% lower against the euro and 0.55% against the US dollar.

Euro zone data was fairly mixed as economic sentiment and industrial confidence grew whilst business climate and services sentiment reduced.

Data from the US showed that personal spending and income improved to 0.3% and 0.5% respectively and pending home sales blew expectations to come in at 6.7% giving the US dollar a boost in afternoon trade.

The Indian rupee advanced the most in two weeks, 1.5%, after data showed the nation’s current account deficit narrowed last quarter to 3.6% of GDP from 6.7% in the previous quarter. The rupee has advanced even higher in early morning trade with GBPINR down 1%.

The yen weakened overnight following mixed data from Japan. Unemployment remained at 4.1% instead of falling to 4%; the rate of inflation fell short of expectations coming in at 0% instead of 0.1%. However industrial production increased to 2%.

Consumer sentiment figures will be looked at today from the US, as investors will once again look for better than expected fundamental data to gauge the Feds action regarding quantitative easing.

Key Announcements:

13.00pm – EUR – German Consumer Price Index (YoY) (Jun): Expected to increase to 1.7%.

13.30pm – CAD – Gross Domestic Product (MoM) (Apr): Expected to fall to 0.1%.

14.55pm – USD – Reuters/Michigan Consumer Sentiment Index (Jun): Expected to decrease to 82.8.