The pound is falling in the wake of disappointing UK GDP results

pulse

May 25, 2017 8:52 AM

The UK's first quarter GDP report undershot expectations.

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LONDON — The pound was falling against the dollar at midday on Thursday after early gains as investors digested the UK's first quarter GDP report, which undershot expectations.

Sterling passed above the psychologically significant $1.30 level last week, but has struggled against the greenback since then, largely thanks to dollar strength.

The pound is down 0.10% from the open, and as of 11.45 a.m. BST (6.45 a.m. ET) is trading at $1.2957:

FXTM research analyst Lukman Otunuga says in a note:

"Sterling was passive this week with prices hovering around 1.3000 as investors redirected their focus elsewhere. A vulnerable dollar did little to elevate prices higher and, as such, continues to highlight how the upside remains limited by Brexit anxieties.

"With uncertainty over Brexit still gripping sterling, downside risks remain present. From a technical standpoint, the GBP/USD could be displaying early signs of exhaustion with weakness below 1.2900 opening a path to 1.2775."

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