GBP/EUR: Pound Steadies After Heavy Fall vs. Euro As May Vows To Stay

The pound euro exchange rate is heading higher for a second day.

The pound is rising after hawkish comments from BoE’s Jonathan Haskel and despite the UK GDP confirming a recession at the end of Q4 2023.

Jonathan Haskel said that rates should remain on hold for a long period to control inflation.

UK GDP contracted -0.3% QoQ in Q4, but more recent GDP data shows that the recession was likely short-lived.

The euro is falling after German retail sales fell 1.9% MoM, defying expectations of a 0.3% rise. The weak consumption outlook means a rebound in the economy in Q1 is unlikely.