The British pound witnessed a significant decline against the dollar during today's trading, after the weak growth data released today by the British economy, which recorded the weakest growth rate since May after the closure due to the Corona pandemic.
The pound sterling against the dollar fell during trading today to hit the lowest level in two sessions at 1.3290, after it opened trading today at the level of 1.3385, and is currently trading at the level of 1.3323.
The economic recovery in Britain almost stopped in October, as increased cases of Coronavirus affected the service sector, increasing the chances of contraction of the economy during the last three months of 2020.
The British economy lost much growth momentum due to government shutdowns to curb the increase in coronavirus infections during the second wave of the pandemic, to carry out large-scale partial shutdowns for a period of four weeks in Britain in November.
The monthly GDP index in Britain for the month of October recorded a growth of 0.4%, in line with expectations, while the previous reading was witnessing a growth of 1.1%, noting that the reading decreased by 8.2% when compared to the same period last year.
A limited rollout of the Covid-19 vaccine began this week in Britain, giving hope for a recovery in consumer spending in 2021. But many companies will face new headwinds from trade restrictions with the European Union that come into effect on January 1 in the event of Brexit. From the European Union without a trade agreement.
This comes after Britain recorded the highest death rate in Europe due to the Corona pandemic, with more than 62,000 deaths, and suffered the largest economic blow of any advanced economy, as its gross domestic product shrank by an unprecedented rate of 19.8 per cent in the second quarter of this year.
Expectations are now beginning to indicate that the British economy will not return to its size before the start of the Corona crisis until the end of 2022, and the Organization for Economic Cooperation and Development has expected that Britain's recovery will be weaker than anywhere else except Argentina.
This weak data caused a negative impact on the levels of the British pound, which suffered this week from the selling movement after last week’s record levels against the dollar.