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Pound to lose safe status
Published on 26.01.2017 21:34

The British currency received a boost today after GDP data for the fourth quarter came in above

consensus at 0.6% against analyst expectations for growth of 0.5%.

Annualized GDP now stands at 2.2% and shows the UK is one of the fastest-growing major

economies in the world

"Strong consumer spending supported the expansion of the dominant services sector and

although manufacturing bounced back from a weaker third quarter, both it and construction

remained broadly unchanged over the year as a whole,” says ONS Head of GDP, Darren Morgan.

The British pound is set to lose it’s safe haven status according to one of the leading analysts

from Deutsche Bank who claims the currency is becoming irrelevant in comparison with other

currencies

The pound is one of the world’s most held and safest currencies, along with the US dollar,

Japanese yen and the euro.

In a report that came as a shock to many Deutsche Bank’s,, Robin Winkle noted "The pound’s

diminishing role in internaonal capital &ows post-Brexit should permanently reduce its reserve

status."

"The pound may offer value but is increasingly irrelevant." He added. The currency also acts as

one of the world’s reserve currencies and is held in large amounts by many countries but Mr

Winkler noted that countries such as China are shying away from the pound.


Andrew Masters

Analyst

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