The pound-euro (GBP/EUR) exchange rate rose for a second day on Thursday, up 0.3% for the week.
The euro weakened after German wholesale inflation fell more than expected, dropping -2.3% YoY in November. Eurozone consumer confidence fell to -14.6 from -14.2 in November. This comes following the ECB’s decision to keep rates unchanged.
The pound extended gains on Friday, supported by the Bank of England’s 25 basis point rate cut that was delivered with a slightly hawkish tone.
The pound rose despite weak UK data, including a sharp deterioration in CBI retail sales expectations and a 0.1% fall in November retail sales, highlighting a slowing economy ahead of the November 26 budget.