The pound euro (GBP/EUR) exchange rate is falling, giving up earlier gains.
The euro has reversed earlier losses despite data showing the the eurozone economy has fallen into recession. The GDP was downwardly revised to -0.1% QoQ, and Q4 2022’s GDP was downwardly revised to -0.1%.
The data comes after German GDP data showed that the eurozone’s largest economy tipped into recession in Q1.
The pound has given up earlier gains. It found support from a warning from the OECD that inflation was expected to remain high at 6.9% this year.
High inflation means that the BoE may need to keep raising interest rates.