Pound Slides After U.K. GDP Misses Forecasts

The pound dropped on Tuesday after data showed the U.K. economy grew less than expected in both the fourth quarter of 2014 and for the full year. Sterling traded at $1.5070, down from $1.5087 ahead of the release. The Office for National Statistics said the U.K.'s gross domestic product expanded by 0.5% in the fourth quarter, a slower growth rate than the 0.7% logged in the third quarter and weaker than the 0.6% expected by economists. For the full year, GDP grew 2.6%, less than the forecast of 2.8%. "We cannot deny the fact that the [U.K.] is surrounded by dark clouds of the struggling economies. Hence, you cannot blame that the U.K.'s growth is not shining as it was," said Naeem Aslam, chief market analyst at Ava Trade, in a note.