Pound euro exchange rate: Sterling under pressure as UK growth data is revealed | Travel News | Travel

The exchange rate is hovering around €1.121 after failing to make any significant movement over the course of Tuesday. 

Sterling has retained its position after climbing from eight monthly lows against the euro, seen late last week. 

But the GBP/EUR rate is due to be tested this morning when UK growth data is revealed. 

Economists have forecast a 0.3 per cent increase in growth for the second quarter of 2017. 

This comes in just slightly above the first quarter’s incremental rate of 0.2 per cent. 

If Britain’s growth exceeds expectations, sterling will likely be delivered a boost. 

But if the data falls short, the exchange rate could take a hit.

TorFX currency analyst Laura Parsons said: “Tuesday was fairly tedious for the GBP/EUR exchange rate, with the pairing experiencing little movement over the course of the day.

Germany‘s IFO business confidence indexes impressed but had little impact on the euro, while the pound remained under pressure ahead of today’s UK growth data. 

“Unimpressive growth figures for the second quarter would weigh on BoE rate hike expectations and could send GBP/EUR lower, while a surprisingly upbeat report is liable to give sterling a lift.” 

Today’s data comes just two days after the IMF downgraded its growth forecast for the UK

Britain’s economy is now expected to grow by 1.7 per cent in 2017, down from a previous prediction of two per cent.

The fund’s economy forecasts for next year remain at 1.5 per cent.

Sterling took a slight tumble against the euro as the forecast was revealed, but managed to claw its way back. 

The exchange rate was buoyed by disappointing data from the Eurozone, specifically services and manufacturing PMIs failing to meet expectations. 

Trade talks between the US and UK have begun this week in Washington which have also strengthened the pound against major world currencies.

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