Sterling’s losses against the euro continued yesterday, taking the loss to almost 1% over the week and its worst position for a month after the GDP data this morning. It’s been more patchy against the US dollar but sterling remains down over the week, further weakened this morning.
An important factor for the economy in the earnings data yesterday was that the news means pensions would be due to rise by 8.5% next year, according to the terms of the pension triple lock. Good news for those retiring to Spain, where the cost of living was shown to be rising by 2.4% yesterday (albeit with core inflation still at over 6%). Even so, both Labour and Conservative politicians have been cagey about whether the triple lock in its present form will remain after the next election.
This morning’s GDP data, showing a big fall in July, was the last major release until inflation next week. It showed the British economy to be 0.5% smaller in July.
GBP/EUR past year
