- Pound slides against EUR for the third day
- BOE warns of a long recession
- FTSE 100 continues to climb
- UK’s GDP is expected to contract by -0.2% in Q2
The Pound Euro (GBP/EUR) exchange rate slides for the third consecutive day following the BOE’s warning of a prolonged recession ahead. The pair declined -0.07% in the previous session settling on Friday at €1.1865, after trading in a range between €1.1890 – €1.1830.
At 06:01 UTC, GBP/EUR trades -0.03% at €1.1862.
Last week the Bank of England warned that a slowing economy could push UK’s economy into a long recession, which suggests that the central bank can be limited in raising rates in the coming months. The BOE delivered a much anticipated 50 basis-point interest-rate hike to 1.75% up from 1.25%.
BOE’s baseline forecast is for GDP to fall by 1.25% in 2023. Based on the market consensus, the UK economy is expected to contract by -0.2% in Q2 of 2022 down from +0.8% in the first quarter.
At the same time, the gross domestic product for the month of June is expected to contract by -1.3% down from the 0.5% previous reading.
Elsewhere, the domestic stock market index in the UK closed near a two-month high settling on Friday up 0.16% at 7445.
Currencylive.com is a news site only and not a currency trading platform. Currencylive.com is a site operated by Wise US Inc ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of Wise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.
