The Pound declined for a second day against the U.S Dollar

The Pound declined for a second day against the U.S Dollar, slipping back under $1.55, while the UK currency also lost ground versus the Euro, after UK services industries unexpectedly contracted in December for the first time in more than 18-months. The slump in service sector growth follows a separate report yesterday from the Chartered Institute of Purchasing and Supply, which also showed that construction had slipped into negative territory in December.
The reports combined show that UK gross domestic product would have lost roughly 0.3% from the third quarter. The aneamic growth in the UK would lead to speculation over a second recession and ultimately suggestions that the Bank of England will need to extend bond purchases beyond the current level. The data this morning was much worse than expected and the Pound declined against almost all of the 16 most actively traded currencies....read more