The pound recorded a large depreciation after slightly disappointing economic data by the Department of Statistics (ONS). Data showed that the UK economy contracted larger than expected in the fourth quarter.This performance continued in January as total manufacturing and industrial production declined faster than estimated.
At the same time trade between the EU and the UK declined in January due to post -Brexit obstacles. Exports to the EU declined by 40% while imports fell 28.8%. The GBP was down 0.83% against the US dollar to the exchange rate of 1.2538 as of 10.15 p.m.
On the other hand, the US dollar continued to strengthen against major currencies after Joe Biden signed a $ 1.9 trillion stimulus package. As a result, the 10 -year U.S. Treasury yield rose sharply to more than 1.60% for the first time this year. This figure indicates that US inflation will continue to rise in the near term.
Producer prices also recorded an excellent performance in February based on today's report, which indirectly led to the best annual performance for 2 1/2 years.
The US dollar index, which measures the greenback against major currencies, strengthened by 0.51% to the exchange rate of 91.903.
The euro depreciated against the US dollar following mixed inflation data in Europe. Meanwhile the country's retail sales fell 9.5% in January. The figures were released a day after the European Central Bank (ECB) set its interest rates.
