{"id":119478,"date":"2025-07-12T14:09:53","date_gmt":"2025-07-12T13:09:53","guid":{"rendered":"https:\/\/currencylive.com\/news\/?p=119478"},"modified":"2025-07-12T14:17:17","modified_gmt":"2025-07-12T13:17:17","slug":"109615-gbp-eur-pound-falls-after-uk-economy-unexpectedly-contracts","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/109615-gbp-eur-pound-falls-after-uk-economy-unexpectedly-contracts\/","title":{"rendered":"GBP\/EUR: Pound falls after UK economy unexpectedly contracts"},"content":{"rendered":"<ul>\n<li><strong>Pound (GBP) falls after gains yesterday<\/strong><\/li>\n<li><strong>UK GDP contracts -0.1% MoM<\/strong><\/li>\n<li><strong>Euro (EUR) rises despite trade tariff worries<\/strong><\/li>\n<li><strong>Trump announced 30% tariffs over the weekend<\/strong><\/li>\n<\/ul>\n<p>The Pound Euro (<a href=\"https:\/\/currencylive.com\/exchange-rate\/1000-gbp-to-eur-exchange-rate-today\/\">GBP\/EUR<\/a>) exchange rate fell on Friday after modest gains on Thursday. The pair rose 0.09% in the previous session, settling on Thursday at \u20ac1.1604. The pair traded in a range between \u20ac1.1578 and \u20ac1.1618. At 21:30 UTC GBP\/EUR is closed -0.47% at \u20ac1.1549. The pair fell 0.43% across the week.<\/p>\n<p>The pound fell on Friday amid risk-off trade and after weaker-than-expected UK GDP data.<\/p>\n<p>Figures from the Office of National Statistics showed the UK economy unexpectedly contracted by 0.1% month on month in May, marking a second straight month of contraction and defying expectations of a rise of 0.1%. UK GDP contracted 0.3% in April.<\/p>\n<p>The data will make for disappointing reading for Chancellor Rachel Reeves, who had been counting on economic growth to help fund public finances.<\/p>\n<p>There are growing concerns that the government will be forced to hike taxes when the economy is already contracting in order to plug a black hole in government finances.<\/p>\n<p>The EUR rose against the pound but fell against U.S. dollar on Friday as investors remained focused on Trump trade developments. While on Friday, there were no developments surrounding a trade deal, there have been developments over the weekend that could impact the mood when the market opens on Monday.<\/p>\n<p>Announced this weekend that he will unleash tariffs of 30% on the European Union, which will be due to start on August 1 if they cannot negotiate better terms.<\/p>\n<p>The EU had been hoping to include a better deal to stave off such high tariffs, but Trump&#8217;s letter will likely dull optimism for an 11th-hour agreement between the two major economies.<\/p>\n<p>Comes after President Trump had warned at the end of last week that he was considering raising the universal base rate tariff from 10% to 15% or potentially 20%.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pound (GBP) falls after gains yesterday UK GDP contracts -0.1% MoM Euro (EUR) rises despite trade tariff worries Trump announced 30% tariffs over the weekend The Pound Euro (GBP\/EUR) exchange rate fell on Friday after modest gains on Thursday. The pair rose 0.09% in the previous session, settling on Thursday at \u20ac1.1604. The pair traded [&hellip;]<\/p>\n","protected":false},"author":163946598,"featured_media":5420,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1380,1379],"tags":[1395,2649,1394,2410],"class_list":["post-119478","post","type-post","status-publish","format-standard","has-post-thumbnail","category-eur","category-gbp","tag-eur","tag-eur-gbp","tag-gbp","tag-gbp-eur"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>GBP\/EUR: Pound falls after UK economy unexpectedly contracts - Currency Live<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/currencylive.com\/news\/109615-gbp-eur-pound-falls-after-uk-economy-unexpectedly-contracts\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ileana Ionescu\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/109615-gbp-eur-pound-falls-after-uk-economy-unexpectedly-contracts\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/109615-gbp-eur-pound-falls-after-uk-economy-unexpectedly-contracts\\\/\"},\"author\":{\"name\":\"Ileana Ionescu\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/3d5cb0a6a22d357fc0b9ad562f35e75b\"},\"headline\":\"GBP\\\/EUR: Pound falls after UK economy unexpectedly contracts\",\"datePublished\":\"2025-07-12T13:09:53+00:00\",\"dateModified\":\"2025-07-12T13:17:17+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/109615-gbp-eur-pound-falls-after-uk-economy-unexpectedly-contracts\\\/\"},\"wordCount\":321,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/109615-gbp-eur-pound-falls-after-uk-economy-unexpectedly-contracts\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100934-gbp-eur-pound-up-on-extension.jpg\",\"keywords\":[\"eur\",\"eur\\\/gbp\",\"gbp\",\"gbp\\\/eur\"],\"articleSection\":[\"EUR\",\"GBP\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2025\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/109615-gbp-eur-pound-falls-after-uk-economy-unexpectedly-contracts\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/109615-gbp-eur-pound-falls-after-uk-economy-unexpectedly-contracts\\\/\",\"name\":\"GBP\\\/EUR: Pound falls after UK economy unexpectedly contracts - 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