UK pound falls to three-week low on disappointing GDP numbers

The UK pound slipped to a three-week low on Thursday (28 May). GBP/USD dropped to 1.5265, its lowest since 8 May, from the previous close of 1.5355. The pair have fallen 1.4% so far this week adding to the 1.5% loss of the previous week.

Sterling had touched a six-month high of 1.5815 earlier in May but if the negativity of the recent days continues, it could mirror April's multi-year low once again.

The UK economy expanded 0.3% on a quarterly basis in the first three months of this year, matching the previous quarter rate, but trailing analysts' expectations of 0.4%.

A services sector index dropped to 0.4% from 0.7% when analysts had been expecting 0.5%.

Another data showed the BBA mortgage approvals rose to 42,100 in April from the March reading of 38,800 beating market forecasts of 39,200.