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Sterling falls, gilts rise after very weak UK GDP
July 25, 2012 / 8:50 AM / 5 years ago

Sterling falls, gilts rise after very weak UK GDP

LONDON, July 25 (Reuters) - Sterling hit its lowest in nearly two weeks against the dollar on Wednesday while gilt futures rose after data showed the UK economy contracted far more than expected in the second quarter of the year.

Britain’s gross domestic product fell 0.7 percent in the second quarter of 2012, far worse than forecasts for a 0.2 percent contraction and the steepest fall since the first quarter of 2009.

Sterling fell to a 12-day low of $1.5470 from around $1.5534 beforehand, while the euro rose to a session high of 78.39 pence from around 77.95 previously.

September gilt futures turned positive, trading up 17 ticks on the day by 0834 GMT. (Reporting by London Markets team; editing by Nia Williams)

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