Sterling exchange rates

On Friday UK GDP data (a measure of the total goods and services produced in the UK) released on Friday. The expectation prior to the release was for a modest rise and technically bring the UK out of recession. However, as may come as no surprise to many of you, the UK economy actually contracted in the last quarter, and confirmed the UK is still mired in recession- the longest since records began.

This announcement may also lead to further quantitative easing measures being put in place by the Bank of England after their next meeting in early November.

The Prime Minister Gordon Brown has promised the UK economy will return to growth by 2010, stating "my pledge to you is to make reform of the financial sector a reality and to see Britain's economy return to growth by the turn of the year". The data will have been as much of a blow to Brown's re-election as it was to the value of the Pound with big drops against the Dollar, Euro, and a host of other currencies.