GBP/EUR: UK GDP & EU Inflation Impacts Pound vs Euro

The pound euro (GBP/EUR) exchange rate is holding steady below €1.14 after losses in the previous session.

The pound fell after the IMF’s latest World Economic Outlook forecast that the UK will contract -0.3% in 2023, one of the worst performing countries in the G20.

The UK was hit harder from rising gas prices , high inflation and poor trade performance.

The euro pushed higher despite retail sales falling -0.8% MoM and the IMF downwardly revising the German GDOP outlook for this year.

The eurozone’s largest economy is set to contract -0.1%. The German government sees the economy growing 0.2%.