Investing.com - Sterling retraced gains against the dollar and the euro on Wednesday after data showing that while the UK posted its fastest rate of growth in a year in the fourth quarter, growth for the full year was revised lower.
GBP/USD was down 0.21% at 1.2441 at 10.10 GMT, from around 1.0514 ahead of the release of the data.
The Office for National Statistics said gross domestic product rose by 0.7% in the fourth quarter compared with the previous three months, up from an initial estimate of 0.6%.
Economists had expected an unchanged reading.
The upward revision was due to stronger than expected industrial output, which grew by 0.3%.
The figures also showed that the service sector drove the recovery, expanding by 0.8%, in line with initial forecasts.
But the estimate for economic growth in 2016 as a whole was revised down to 1.8% from 2.0%, the ONS said.
The report also pointed to a marked slowdown in business investment, which fell by 1.0% in the last three months of 2016.
The pound retreated from its highest levels of the year so far against the euro, with EUR/GBP last at 0.8438, off 0.13% for the day after falling as low as 0.8403 earlier.
The single currency has come under selling pressure this week amid fears over the possibility of a Brexit or Trump-style shock result in France’s upcoming presidential election.
Investors’ fears that a victory for far-right candidate Marine le Pen, who is the front runner to win the first round vote, could potentially trigger the country’s exit from the euro area.