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According to Reuters, sterling is struggling against its US counterpart after a downward revision to UK growth yesterday.
By 09:14 GMT, the pound was unchanged at $1.5380 on the day, slightly below its 200-day moving average of $1.5390.
Kit Juckes, currency strategist at Societe Generale, said sterling is lacking natural buyers at the current time.
He added: "The concern that the VAT rise, higher public sector spending cuts, higher unemployment, the government in a bind ... is central in people's minds."
This comes after yesterday when it was announced the UK economy had increased by 0.7 per cent, instead of an initial reading of 0.8 per cent.
Jeremy Stretch, currency strategist at CIBC, pointed out the GDP was not "particularly well received" and he stated there is recognition that inflation pressure is there.
Posted by Greg Secker
