Sterling extended losses today, slipping further below $1.30, after data showed Britain's economy grew at its weakest annual pace in more than seven years in November. 

Today's figures showed the UK economy grew in November just 0.6% from a year before.

This was the weakest expansion since June 2012 and down from annual growth of 1.0% in October, which was an upward revision from previously reported data. 

The data cover a politically turbulent period in Britain and do not capture some private-sector surveys that suggested a recovery in sentiment following Boris Johnson's election win on December 12. 

They also come after recent comments from various Bank of England policymakers backing rate cuts. 

The pound began its slide in the Asian session this morning and extended its drop after the data. It was down 0.8% to $1.2962, its biggest daily loss in nearly two weeks. 

Policymaker Gertjan Vlieghe's comments on Sunday were the latest sign that the Bank of England is concerned about weakness in the British economy and the need to act soon. 

Governor Mark Carney, who steps down in March, surprised markets last Thursday by saying that the Bank of England could cut interest rates if the economic weakness seen in late 2019 persists into 2020. 

The pound has fallen more than 2% in the opening weeks of the year. 

Against the euro, sterling dropped 2% to 85.58 pence - also a more than two-week low. 

"We think the Bank of England will cut rates this month, Brexit uncertainty will get worse, not better, and the economy is likely to fall into recession," said George Saravelos, global head of FX research at Deutsche Bank. 

Bank of England policymaker Silvana Tenreyro sounded a similar note on Friday, saying the economy was more likely to undershoot than overshoot the bank's last forecast from November. 

The next forecast will be published alongside the Bank of England's next rate decision on January 30.

Despite the growing rate cut talk and weak data, hedge funds have increased their bullish sterling positions to their biggest in more than a year and a half, the latest positioning data show.