Pound Drops for Second Day, Losing Support from Fundamentals

Economic news from the United Kingdom was rather poor today, making the Great Britain pound fall for the second session, hurting optimism about recovery in the country.

The GfK Consumer Confidence index dipped from -12 to -13 in December instead of rising as was predicted. Nick Moon, Managing Director of Social Research at GfK, expressed his worries:

Although a single point move is not statistically significant, what matters is that the Index has fallen for three months in a row, and we can say there is a downwards trend.

The current account deficit increased to £20.7 billion in third quarter of 2013 up from £6.2 billion in the second quarter. Smaller increase to £13.8 billion was predicted by analysts.

As a bit of good news, the final revision of UK gross domestic product confirmed healthy growth of the economy.

GBP/USD was down from 1.6368 to 1.6350 and GBP/USD fell from 170.61 to 170.11 as of 18:18 GMT today. EUR/GBP advanced from 0.8343 to 0.8362.

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