Sterling ends the week slightly weaker against the euro and the dollar following UK GDP data.
The UK economy contracted between April and June, albeit by less than markets had been expecting. Soaring energy prices are the main cause of this contraction, with the average household energy bill expected to reach £4,200 in January and as much as £4,400 in April.
Markets will now be keeping a close eye on next week’s inflation figures for more information on the state of the UK’s economy and how the Bank of England might act to tackle it.
In the eurozone, both France and Spain saw rising inflation in July. Inflation for the whole eurozone will be released next week.
The dollar fell against most major currencies yesterday following better-than-expected inflation figures but has made a slight recovery this morning. Today, all eyes will be on Michigan consumer sentiment figures.
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