Pound drops below $1.27, headed for worst streak in a decade

The British pound dropped below $1.27 for a sixth straight session, its lowest level since July, after UK GDP grew only 0.1% in Q3, weaker than expected, due to an unexpected contraction in September.

Pound drops below $1.27, headed for worst streak in a decade

A decline in manufacturing output primarily drove this downturn and reduced information and communication services activity. The pound is on track for its worst losing streak in a decade, down 2% this week and set for its seventh consecutive weekly loss, the longest stretch since 2014.

Pound drops as strong US dollar weighs on expectations of higher inflation

The pound's decline is further exacerbated by a strong US dollar, fueled by expectations that policies under the Trump administration could increase inflation and limit the Federal Reserve's ability to cut interest rates.