Sterling tumbles 1% versus dollar

Sterling slumped in American trade against the dollar following a spate of data from Britain and the US, including remarks by Bank of England member Ben Broadbent, after the BoE's policy decisions earlier this week. 

As of 05:40 GMT, GBP/USD fell 1.01% to 1.3772 from the opening of 1.3913, with an intraday high at 1.3987, and the lowest since January 17 at 1.3766. 

Earlier UK data showed manufacturing output rose 0.3% in line with expectations, and up from 0.2% in December, while industrial output fell 1.3%, missing expectations of a 0.9% drop and compared to November's 0.3% rise. 

UK goods trade deficit widened to 13.6 billion pounds from 12.5 billion in November, while analysts expected 11.6%, as GDP growth forecasts were cut down to 0.5% from 0.6% in December forecasts. 

BoE member Broadbent said in earlier remarks that interest rates outlook has risen compared to November forecasts, while confidence in wages growth has risen as well, noting that a rate hike could come closer than expected. 

Bank of England voted unanimously on Thursday to hold interest rates unchanged at 0.50% in line with expectations, after raising them by 25 basis points in November, the first such increase in ten years to combat inflation, while also holding the assets purchase program unchanged at 435 billion pounds.

Otherwise, US wholesale inventories rose 0.4% in the final December reading, up from 0.2% in the preliminary reading, while analysts expected a 0.2% rise with no change, as wholesale sales for the same month slowed down to 1.2% from 1.9% in November, beating expectations of a 0.4% rise.