pound-sterling-gbp-coin - GBP

The pound euro (GBP/EUR) exchange rate is falling for a fourth day.

The pound is under pressure after UK GDP fell by more than expected in July, dropping -0.5% MoM, down from a 0.5% rise in June. Expectations had been for a -0.2% decline.

The BoE’s rate hikes are taking effect, slowing the economy. The market is increasingly convinced that the BoE hike next week will be the last this cycle.

The euro is rising but remains subdued after Spanish inflation ticked higher and German ZEW economic sentiment unexpectedly improved in September.

Eurozone industrial production data is due shortly and is expected to show a -0.7% decline.