The pound retreated from the round 1.60 area on a weak current account figure. The deficit was almost double the early expectations, and hit 9.4 billion. A deficit of 5 billion pounds was predicted. Also the deficit for Q4 was revised to the downside, from 10.5 to 13 billion.
British GDP came out at as expected at a growth rate of 0.5% in Q1. This was the second and last revision, so no big surprises were expected here.
Later we have hearings in parliament. Mervyn King will take the stage. Given the past, he is likely to hurt the pound by painting a bleak picture…
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