More from FXstreet.com

Forex: Pound plummeting after unexpected GBP contraction

By FXstreet.com,  January 25, 2011, 04:49:00 AM EDT

FXstreet.com The Pound is plunging against its main rivals, after the unexpected decline on UK Gross Domestic Product data, which showed an economic contraction in fourth quarter, for the first time in more than a year.

GBP/USD retreat from 1.6015 day high, has extended more than 100 pips lower, to reach a fresh 7.day high at 1.5805. GBP/JPY pullback from 136.35 high on Asian session has extended about 175 pips lower to a fresh 2-week low at 130.15, and the EUR/GBP rally from 0.8285 low on early January as reached prices above 0.8600 to approach December high at 0.8645.

UK GDP shrank at a 0.5% pace in the fourth quarter of 2010,m while it grew 1.% year on year, against market expectations of a 0.5% quarterly advance and a 2.7% year on year rise, according to data released by National Statistics, due to strong snow storms in December, that hit Services and construction sectors.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Forex and Currencies

Referenced Stocks:



Latest News Video

Radio Host Wants to 'Shoot Hillary Clinton in the Vagina'
Radio Host Wants to 'Shoot Hillary ...
Raha Moharrak: First Saudia Arabian Woman To Climb Everest
Raha Moharrak: First Saudia Arabian...
Marine Reunited With Service Dog in Emotional Ceremony
Marine Reunited With Service Dog in...


Sign-in
Existing NASDAQ.com member? Log in here.

By signing into to the site using any of the third-party services above, you agree to NASDAQ.com's Terms of Use.

From Our Trusted News Source





Most Active by Volume:

Company Last Sale Change Net / %
BAC $ 13.43 0.07  0.52%
CSCO $ 24.24 0.35  1.48%
MSFT $ 34.87 0.79  2.32%
F $ 15.08 0.44  3.01%
ARUN $ 13.10 4.51  25.61%
SIRI $ 3.50 0.05  1.45%
GE $ 23.46 0.19  0.82%
S $ 7.32 0.04  0.55%