Prime News: British pound plunges after robust US data

The British pound plummeted Thursday following the US economy expanded robustly in the second quarter, escalating bets the interest rates could increase this year.

According to the Commerce Department, US gross domestic product grew at 3.7%, from 2.3% last month.

Sterling finished at 72.91 pence per euro. Against the US dollar, the pound stood at $1.5398.

“All the financial upheaval means the September rate hike is not “perhaps as certain as it was previously,” said Dennis de Jong, Managing Director at UFX.com.

Traders remain uncertain on the Bank of England’s timing of rate increase, given recent volatility in global stock markets.

The material has been provided by InstaForex Company – www.instaforex.com

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