eur-bank-notes-magnifying-glass - EUR

The pound euro (GBP/EUR) exchange rate is falling lower on Wednesday, after two days of gains.

The euro is in favour after an upward revision to eurozone Q2 GDP data, which rose by 0.8% QoQ, up from 0.6%.

Attention will now turn to tomorrow’s ECB rate announcement. The ECB could hike rates by 50 or 75 basis points.

The pound is paring yesterday’s gains as investors wait for more details on the energy plan, which is expected to see energy prices capped at $2500.

This could mean that peak inflation is passing sooner and that the BoE may stop hiking interest rates sooner.