The pound euro (GBP/EUR) exchange rate is falling for a fifth day.
The pound is falling after the UK’s GDP contracted more than expected, shrinking by 0.3% MoM in April, worse than the -0.1% forecast and the fastest contraction in 18 months.
The economy shrank as a result of the pullback from stronger growth in Q1 and ass businesses and household navigate rising unemployment, higher taxes and Trump’s trade tariffs.
The EUR is rising, benefiting from the weaker USD as Trump’s trade tariff concerns increase.
The EUR has surged to a multi-year high against the USD as it is a liquid, stable alternative.
The EUR gains as the ECB nears the end of its rate cutting cycle.