Sterling depreciates as ONS reveals disappointing flash estimate for Q4
City Index January 25, 2013 4:15 PM
<p>Sterling has lost ground after the ONS revealed its flash estimate for the fourth quarter,</p>
Sterling has lost ground in forex trading this morning (January 25th), after official figures revealed the UK economy contracted in the final three months of 2012.
According to a flash estimate from the Office for National Statistics (ONS), the UK experienced a 0.3 per cent shrinkage in the fourth quarter.
This data – which is compiled using around 14 per cent of the overall reports necessary for the ONS to calculate its final figure for the period – did not come as a surprise to analysts. But as there are at least two further revisions due from the statistics bureau, this 0.3 per cent drop could still go up or down.
A Treasury spokesman commented: "It confirms what we already knew – that Britain, like many European countries, still faces a very difficult economic situation."
At 10:50 GMT, the pound fell by 0.4 per cent against the euro to €1.175, while it lost marginal ground versus the dollar to $1.577.
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