Sterling picks up after UK Q1 GDP meets forecasts

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Sterling has brightened after an earlier bout of pre-data queasiness against the dollar, after UK first quarter GDP growth came in weaker, but largely as expected.

The pound is now flat on the day against the greenback at $1.4580, not far off yesterday’s 10-week high of $1.4638.

Sterling has rebounded 5.7 per cent since hitting a post-crisis low at the end of February after London mayor Boris Johnson threw his weight behind the campaign to take Britain out of the EU.

The currency has now carved out its longest winning streak since the start of March. A decisive intervention in the Brexit campaign from Barack Obama last week has swung opinion polls in favour of the ‘Remain’ campaign, helping to extend sterling’s recovery.

The GDP reading showed the UK economy grew 0.4 per cent in the first quarter, a slowdown from 0.6 per cent in the last quarter of 2015.

Chart courtesy of Bloomberg

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