Positive GDP data struggles to boost sterling

The data unexpectedly shows the UK economy contracted by 0.7% in the second quarter, less than the -0.8% figure predicted by analysts earlier this month. While the news has halted sterling's downward slide, immediate reactions to the data indicating a partial recovery are relatively subdued, says currency firm Caxton FX. "Traders remain hesitant to take significant positions on sterling over the bank holiday weekend," says Duncan Higgins, senior analyst at the company. The pound has advanced a mere 0.25% against the euro since 9.45 this morning. "Investors remain cautious of ove...