23.05.201403:34:51UTC+00Pound plummets in 6 days on GDP report, finance figures

The pound plunged for the first time in six days against the US dollar following the reports showed 1st quarter gross domestic product matched economist estimations and Britain's deficit was higher in April than analysts predicted.

Sterling weakened against 12 of its 16 major peers. The UK currency has increased last year as figures surpassed the Bank of England's forecast pressed investors to carry forward their expectations of the 1st interest rate hike since 2007.

Meanwhile, UK government bonds were slightly changed.

Sterling weakened against 12 of its 16 major counterparts. The U.K. currency has surged in the past year as data that exceeded the Bank of England’s forecast prompted investors to bring forward their expectations of the first interest-rate increase since 2007. U.K. government bonds were little changed.

“The market likes an upside surprise for the pound. Obviously we’re a bit spoil now given that anything merely in line is deemed to be a disappointment,” said Lee McDarby, Executive Director of UK corporate foreign-exchange sales at Nomura International in London.

The pound dived 0.3% to $1.6858 at 4:41 p.m. (London time) following it climbed 0.8% in the last five days. Sterling was somewhat changed at 80.99 pence per euro after it appreciated to 80.86 pence yesterday, the strongest level since January 2013.

Figures from the Office for National Statistics in London showed Britain’s economy proliferated 0.8% in the three months through March, unchanged from an initial estimate. Net borrowing last month was 11.5 billion pounds as compared to 9.5 billion pounds a year earlier, a separate report said.