How U.K. GDP data could yank the pound back down to $1.26

The first snapshot of the U.K. economy’s health this year will test the strength of the pound, which has been making headway recently after plunging in the immediate aftermath of the Brexit vote.

Due Friday, the first-quarter report on gross domestic product is expected to show the slowest pace of growth in a year, highlighting that British shoppers are feeling the pinch from rising prices.

“Consumers seem to be feeling the adverse effects of the post-referendum drop in the exchange rate, given that it’s pushed up import prices. We are seeing prices on the High Street rising quite sharply,” particularly food and fuel prices, said Ruth Gregory, U.K.

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