- Pound is on track for a -0.33% loss this week against the EUR
- GBP to EUR snaps two weeks of losses
- UK Investors await UK GDP and manufacturing production data
- The UK to experience the worst economic downturn since the coronavirus lockdown
The Pound Euro (GBP/EUR) exchange rate is on track for a second weekly loss in a row. The pair fell by -0.38% in the previous session settling on Thursday at €1.1817, after trading in a range between €1.1870 – €1.1805.
At 05:56 UTC, GBP/EUR trades -0.03% at €1.1814.
In the UK, the economy is expected to contract by -0.2% in the second quarter of 2022 down from an increase of 0.8% in Q1. This would be the worst economic downturn since the coronavirus lockdown at the start of 2021 when the UK economy contracted by -1.6%.
At the same time, the month-over-month reading of the UK’s GDP is expected to show the economy contracting by -1.3% in June versus a 0.5% increase in the previous month.
The Bank of England (BOE) warned investors to brace themselves for the worst recession since the global financial crisis. Additionally, the UK government is preparing to implement energy blackouts in the forthcoming winter which will negatively impact the GDP.
Meanwhile, manufacturing production in the UK is expected to shrink -by 1.8% in June compared to the 1.4% previous reading. Industrial production is forecast to fall by -1.3% in June versus an increase of 0.9% in the previous month.