Being the main focus of the market in the European session was the release of data from the UK showing preliminary estimates of economic growth in December and the fourth quarter of 2021.
The Office for National Statistics (ONS) reports the UK’s Gross Domestic Product (GDP) grew by 1% in the last three months of 2021, similar to the revised increase in the previous period.
However, the figures were slightly off the market forecast for growth of 1.1%.
Moreover, data from the ONS also showed the UK economy contracted by 0.2% in December after a 0.9% jump recorded in the previous month. The figure recorded however was better than expected to decline 0.6%.
Overall, the UK economy is estimated to grow by 7.5% in 2021 compared to a contraction of 9.4% in 2020.
This marks a stronger recovery in Britain after being helped by billions of pounds of government aid to support jobs and firms due to the Covid-19 pandemic that struck.
The initial reaction from the pound showed a decline before rebounding in the European session with it trading steady at around 1.3560 against the US dollar.
