POUND LIVE: Pound falls amid G20 tensions and latest economy data
THE pound tumbled on Friday amid global and economy worries, which put pressure on the currency.
Sterling sank around 0.45 per cent against the euro to 1.1306 and 0.6 per cent against the US dollar to 1.288, after official figures showed construction and production output fell 1.2 per cent in the three months to May compared to the three months previously.
Trade data also disappointed, with imports increasing at 2.1 per cent - a higher rate than exports at 0.8 per cent - over the quarter to May.
David Madden, market analyst at CMC Markets UK said: "The GBP/USD went from bad to worse.
"Tepid economic indicators from the UK this morning followed by a positive move in the US dollar on the back of the non-farm numbers drove the pound lower.
"The UK revealed a sting of disappointing data today as the construction output, industrial production and manufacturing production reports for May all came in under analysts’ expectations.
"Overall it was a mediocre week for British economic announcements as the manufacturing and services reports on Monday and Wednesday respectively showed a slowdown in the expansion rate."
At the same time, sentiment has suffered in stock markets, amid fears over global politics are heightened by the G20 summit.
Lower oil prices weighed on Britain's FTSE 100, but it managed to claw up amid the weaker pound.
Connor Campbell, financial analyst at Spreadex.com, said: "With sterling’s losses showing no signs of abating – its nine-day low against the dollar was joined by a similar nadir against the euro – the FTSE could just about keep its head above water, nudging five points higher despite Brent Crude’s Shell and BP bruising three per cent decline."