by Sam Hewitt
UK sterling has fallen -0.42% versus the euro today, to 1.3352.
This is chiefly because the UK economy expanded at a slower pace than forecast in the last 3 months of 2014, according to official figures today. Britain's economy grew just +0.5% between October and December, says the Office for National Statistics, less than the
This weakened sterling, because it may signal that the UK's economic comeback is now past its best. Industrial production slid -0.1% in Q4 for instance, while construction activity fell -1.8%. David Kern, chief UK economist at the British Chambers of Commerce, says that "There is no doubt that the pace of expansion is easing."
In spite of this however, the pound still stands just a cent below its highest versus the euro since February 2007. This reflects the fact that, although the UK economy eased in Q4, it still expanded the most since 2007 across the whole of last year, by +2.6%.
