Sterling exchange rates have taken a dive this morning as ONS figures show UK GDP contracted by -0.8% in the second quarter. This is at odds with market predictions for a -0.3% contraction and puts the economy on track for a -5.6% annual decline.

While the contraction reflects a downturn in the service, manufacturing and industrial production sectors, it is a significantly smaller contraction than the -2.4% last quarter. This shows the pace of recession is easing and this could be beneficial for sterling exchange rates in the long term.

Sterling currency rates are currently at 1.6442 against the US dollar and 1.1568 against the euro.

The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.