Blog: GBP/EUR: The Pound Plunges On Brexit Troubles, GDP Data Due – Currency Live

  • Pound (GBP) falls as Brexit tensions rise with the EU
  • UK GDP to show growth, but outlook remains weak
  • Euro (EUR) rises as German inflation hits 7.4%, ECB could hike in July
  • There is no high impacting data due

The Pound Euro (GBP/EUR) exchange rate is falling on Thursday after losses in the previous session. The pair settled 0.44% lower yesterday, at €1.1650, after trading in a range between €1.1637 – €1.1732. At 05:45 UTC, GBP/EUR trades -0.35% at €1.1609.

The Pound closed towards the lower of the day yesterday and has continued falling today as Brexit concerns return to haunt the market. After months of discussion, the UK Government threatening to scrap the Northern Irish protocol has not gone down well with the EU and could spark a trade war with its closest neighbour. A trade war is the last thing the UK needs right now given that it would drive up inflation further, deepening the cost-of-living crisis

Foreign Secretary Liz Truss is due to speak with European Commission Vice President Maros Sefcovic today.

Today also sees the release of UK economic growth data, which is expected to show that the economy grew 1% quarter on quarter in the first three months of the year. The growth is principally owing to a strong start to the year, while growth is expected to have slowed in March to just 0.1% month on month.

The data comes after the BoE warned of inflation rising over 10% in the coming months and a recession.

The euro pushed higher yesterday after German inflation confirmed the preliminary reading of 7.4% year on year in April, up from 7.3% in March and a new record high.

Following the data, European Central Bank Governor Christine Lagarde hinted at a July interest rate hike. Momentum has been growing with the central bank for a sooner rate hike as inflation across the region surged, with some countries such as Greece already experiencing double-digit inflation.

There is no high impacting Eurozone data due to be released today. Instead, sentiment is likely to drive the index. is a news site only and not a currency trading platform. is a site operated by Wise US Inc (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of Wise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.

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