The pound is still well supported against the dollar but weaker against the euro this morning over concerns about the UK’s economic recovery in comparison to the Eurozone. The Office of National Statistics reported that the UK had the worst economic slump in Europe during the first half of this year, with the GDP drop in the second quarter larger than any EU member state.
The pound remained at key levels against both the euro and the dollar for most of yesterday, after GDP data was released. The data showed that the UK economy has fallen into recession, the first in 11 years.
After two big data releases this week, there are no more for the UK until next week. Also resuming next week are Brexit negotiations between the UK and EU. Any news from these talks could impact the pound, either positively or negatively. After a packed timetable of negotiations, it’s hoped that an agreement will be reached by the beginning of October.
