The British pound fell after weak UK GDP data.

Data shows that the UK economy unexpectedly recorded zero growth in January, leading to a drop in the pound. Economists had previously expected a growth of 0.2%. "Our expectations for a strong start to the year have weakened," said Sanjay Raja, economist at Deutsche Bank, in a report. He said that the conflict in Iran could further drag down economic growth, as rising energy prices squeeze disposable income and limit investment and spending. He also mentioned that the Bank of England faces a difficult balancing act between weak economic growth and rising inflation. Following the data release, the pound fell to a 10-day low of 1.3276 US dollars, down from 1.3316 US dollars before the data was released, with the drop also attributed to a stronger dollar. The euro rose to a intraday high of 0.8633 pounds, up from 0.8625 pounds before.