A fairly quiet news week for the UK ended on a high as data revealed that improving trade conditions and bolstered manufacturing/construction sectors helped the British economy expand by more than anticipated.
The Pound Sterling to Euro Exchange Rate was in the region of 1.1696 as of 10:15 GMT
1 Euro is currently worth 0.8548 pence
Economists expected that the UK would post economic growth of 0.6 per cent in the second quarter, twice as much as the 0.3 per cent expansion recorded in the first.
However, with exports climbing by the most for twelve months (and net trade adding 0.3 percentage points to GDP) the economy actually expanded by 0.7 per cent quarter-on-quarter.
Growth was up 1.5 per cent year-on-year, beating the 1.4 per cent estimate.
Exports surged by 3.6 per cent quarter-on-quarter, the most rapid rise since the end of 2011, and consumer spending increased by 0.4 per cent.
The GBP/EUR exchange rate hit a high of 1.1727
According to the Office for National Statistics, manufacturing grew by 0.7 per cent in Q2 rather than the 0.4 per cent originally estimated while construction growth was upwardly revised from 0.9 per cent to 1.4 per cent.
After the data was published economist Vicky Redwood stated: ‘The recent pick-up in activity should boost confidence and so could kick off a virtuous circle of improving sentiment and further rises in output.’
However, Redwood added: ‘The recovery still faces some significant obstacles, not least flat bank lending and the ongoing fiscal squeeze.’
Before the growth report was published the Pound was heading for its first five-day decline for three weeks against both the US Dollar and Euro.
Although the GBP/USD pairing remains under pressure as the fervour surrounding the Federal Reserve tapering easing intensifies, the Pound was able to hit a high of 1.5631 against its US rival.
The British asset also advanced on the Euro, in spite of the common currency garnering support from data showing that the German economy expanded by 0.5 per cent in the second quarter, in line with expectations.
UK data to watch out for next week includes the GFK consumer confidence survey for August.
Current Pound Sterling (GBP) Exchange Rates:
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5627>
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1696 >
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.7326 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9932 <
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6400 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8548 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5759 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5007 <
(As of 10:15 GMT)
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