Following a turbulent week rife in decline for the GBP, it managed to gain some ground against the euro on Monday largely due to the German economy. While the country’s struggling economy saw some positive results, following a small boost to its retail sales and a drop in unemployment, inflation continues to slow for the third consecutive month. Although this was bad news for the euro, it did help the pound climb its way back to a more comfortable position.
Pound to euro: The pound has seen a minor boost following news of the German economy dipping (Image: Getty Images)
There was further good news for the UK following encouraging data released by the Office for National Statistics (ONS) reflecting an unexpectedly resilient UK economy.
Annual growth for the quarter grew from 1.2 to 1.3 per cent as a result of household spending. Although the economy shrank by -0.2 per cent, negative effects from Brexit stockpiling died down, and sterling revelled in the benefits.
Chief economic advisor at EY Item Club, Howard Archer said: “We believe the economy likely returned to growth in the third quarter of 2019, with expansion seen around 0.3-0.4 percent in the second quarter, against the previous period.”
According to Bloomberg the pound is currently trading at 1.128 against the euro at the time of writing.
However, as Brexit negotiations rumble on, all eyes remain on the government to see which direction the pound is fated to next.
Negative comments from the Bank of England (BoE) saw a major drop for the pound last week.
While there is no certain outcome for Brexit yet, despite the Prime Minister working against a 31 day deadline, the BoE suggested that interest rate