The British economy contracted by 0.3% according to the final GDP read for the fourth quarter of 2012. This was the read in the previous estimate. The current account for Q4 was expected to stand at a deficit of 12.8 billion pounds, like in Q3 but actually grew to 14 billion pounds.
GBP/USD traded at 1.5170 towards these publications, up from the lows of 1.5135 seen yesterday and is now falling. It fell as low as 1.5120 before bouncing. Trading remains choppy.
Business investment was expected to be confirmed at a drop of 1.2% an came out better than expected at a drop of 0.8%.
The economy grew by 0.9% in Q3 after a long recession, and returned to contraction afterwards. If the economy contracted in Q1, Britain entered an official recession, a triple dip recession.
For more about the pound, see the GBPUSD forecast.
