The pound euro (GBP/EUR) exchange rate is falling for a third day below €1.1440
GBP is extending losses despite stronger UK GDP revisions, which showed 0.3% QoQ growth in Q2 and annual growth revised up to 1.4%. However, the data highlighted weak fundamentals, with flat consumption and a 1.1% drop in business investment, leaving growth reliant on government spending.
Fiscal concerns ahead of November’s budget continue to weigh on sterling, with Labour’s conference adding uncertainty.
The EUR is rising despite weaker German retail sales, which fell -0.,2% MoM. Attention shifts to September CPI data and ECB President Lagarde’s speech, with markets pricing limited chances of another ECB rate cut.