ExchangeRates.org.uk reported that the Pound (GBP) was trading at €1.1874, up approximately 0.2% from Monday’s opening rate. This increase came after the UK economy expanded by 0.4% in May, surpassing market expectations. The services and construction sectors have shown significant growth, indicating a positive outlook for the UK economy.
Sanjay Raja, Chief UK Economist at Deutsche Bank, noted that the UK GDP is gaining momentum and the brief recession is now in the past. He projected a strong growth for the second quarter and the rest of the year.
On the other hand, the Euro (EUR) stumbled as German inflation eased to 2.2% in June. Services inflation remains a challenge for central banks, leading to speculations of further interest rate cuts by the European Central Bank (ECB).
Looking ahead, the Pound Euro exchange rate may be influenced by global risk dynamics. A positive trading environment could benefit the Pound, while uncertainties surrounding interest rate cuts could weigh on the Euro.
Overall, the outlook for the Pound Euro exchange rate remains uncertain, with market sentiments and economic data playing key roles in determining its direction.