Sterling reversed a four day slide against the dollar yesterday, supported by positive economic data that included another upward revision of the 2nd quarter GDP figure.
- The final gross domestic product figure showed that UK growth contracted by 0.6% between April and June, a narrower fall than the previous estimate of a 0.7% contraction.
- The revision is almost entirely due to stronger estimates of construction output than previously forecast, according to analysts.
- Sales volumes at U.K. retailers also bounced back more than expected to their strongest level for five months in September and are expected to remain steady in October.
- In the US, a confidence survey produced a figure below the level expected, which cautioned investors slightly, capping sterling’s gains and bringing it down from an intra-day high of $1.5989.
- However, the pound has continued to rally this morning, already up another cent and currently trading around 1.6060, following the strongest Gfk consumer confidence survey figure since January 2008.