The UK Chancellor of the Exchequer, George Osborne, seemed to indicate, in comments made yesterday, that today’s GDP figures may be a little disappointing. Remember the shock 0.5% contraction in Q4 last year and another bad figure would really have the sterling bears coming out of hibernation. Mr Osborne told the meeting of cabinet ministers that the economy was on the right track but that the underlying position remains difficult.
This last comment was seized on by the market and EUR/GBP in particular rose significantly.
