Good afternoon,
GBP/USD exchange rates slipped to a three-week low during today's session as figures this morning confirmed the UK economy only grew 0.3% during the first quarter.
The GBP/USD cross fell from $1.5381 to $1.5264 on the back of the announcement, the lowest we have seen the currency pair since the 7th May.
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Since the UK Election results the pound had been performing reasonably well, however, today's growth figure seems to have removed some of the confidence surrounding the future of the UK economy.
The revised Gross Domestic Product (GDP) figure of 0.3% was largely down to a rise in UK imports and further damages the UK's net trade position.
The UK's trade deficit increased by £3.6bn in the first quarter, which the Office of National Statistics said wiped off 0.9% from the GDP rate.
If exports do not pick up it could continue to effect economic growth, which in turn may hinder the Bank of England raising interest rates anytime soon.
With U.S. Federal Reserve pulling further ahead in the race to raise interest rates the pound could come under increased pressure in the coming months, so if you have an upcoming requirement to buy dollars it is more important than ever to understand what options are available.
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