LONDON: The pound fell on Friday after data showed the British economy shrank unexpectedly in October, which could prompt traders to attach a greater chance to the prospect of speedier rate cuts by the Bank of England next year.
Official data showed UK economic activity contracted 0.1% in October.
Sterling rises towards highest in over 2-1/2 years versus euro
A Reuters poll of economists had forecast a rise of 0.1% last month, from September’s 0.1% fall.
Sterling initially fell as much as 0.3% after the numbers and was last down 0.24% at $1.2642.
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