The pound weakened against the euro yesterday but saw a boost against the dollar after a fall in US inflation. This morning, sterling is slightly weaker against the dollar.
This morning, GDP figures revealed that the UK economy contracted by 0.1% in the second quarter of the year, less than the 0.2% markets had predicted. Annually, the economy grew by 2.9%, slightly more than the 2.8% markets had predicted. Other data showed that the UK trade deficit widened in June, with exports decreasing by 4.2%.
Next week, the latest inflation figures for the UK will be released. An increase from last month’s figure of 9.4% could increase expectations for another large interest rate hike in September.
