Pound to Euro (GBP/EUR) Exchange Rate – Sterling higher as UK GDP rises

The Euro softened against the Pound on Tuesday after a report showed that the UK economy expanded in the fourth quarter of 2013.

Confidence in the strength of the UK economy is rising following a run of positive data reports.

The British economy grew at its strongest rate in six years in 2013, having ended the year on a strong note as the recovery became more entrenched.

The UK’s services and manufacturing sectors were the drivers of 0.7% growth in the fourth quarter, taking the annual growth rate to 1.9%, the strongest since 2007 before the financial crisis took hold.

The economy grew in every quarter last year according to the Office for National Statistics, providing a significant boost for the chancellor who has persistently argued that a burgeoning recovery is proof that his economic plan is working.

The GDP figure is good news for Chancellor George Osborne who said; ““It is more evidence that our long-term economic plan is working, But the job is not done, and it is clear that the biggest risk now to the recovery would be abandoning the plan that’s delivering jobs and a brighter economic future.”

The news also supported the International Monetary Funds decision to raise its global growth forecast.

The Euro found some support from data out of France which showed that consumer confidence increased more than forecast in January and as the Republic of Ireland posted far better than expected yearly retail sales.