- Pound (GBP) rises but is flat across the week
- UK needs £1 trillion investment across 10 years
- Euro (EUR) falls after a drop in German industrial output
- Eurozone Q2 GDP was lowered to 0.2% QoQ
The Pound Euro (GBP/EUR) exchange rate is rising on Friday after a flat session yesterday. The pair ended flat at 0% in the previous session, settling on Thursday at €1.1884 and trading in a range between €1.1842 and €1.1889. At 15:00 UTC, GBP/EUR trades +0.03% at €1.1886. The pair is set to end the week flat.
The pound is pushing higher on Friday but is set to end the week flat.
A report out today noted that Britain needs an additional £1 trillion in investments across the next decade to grow the economy.
The new British Prime Minister, Sir Keir Starmer, had economic growth at the heart of his election campaign. He aims to achieve annual growth of 2.5%, a level that hasn’t been reached since before 2008.
Elsewhere, Halifax house price data showed that UK house prices posted the biggest annual gain since late 2022.
The Halifax house price report showed an increase of 4.3% in August, which suggests renewed momentum in the property market.
On a monthly basis prices rose 0.3% ahead of expectations of a 0.2% increase.
The improving housing market follows the Bank of England’s 25-basis-point cut in interest rates in the August meeting.
The euro is heading lower after weaker-than-expected German industrial production figures and a downward revision to eurozone Q2 GDP.
German industrial production dropped in July, highlighting the ongoing troubles of Europe’s largest economy.
German industrial output decreased by 2.4% month over month in July after rising 1.7% in June. The data add to the sense that the sector is facing a deep crisis. After contracting in Q2, the German economy could be heading for a technical recession in Q3.
Meanwhile eurozone GDP data was downwardly revised to 0.2% quarter on quarter from 0.3% in the preliminary estimate.
The data comes ahead of the ECB interest rate decision next week where the central bank could cut rates by 25 basis points.
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