Euro Slides Against Pound as Germany's Industrial Production Falls

The euro dropped against the British pound on Monday as German industrial production unexpectedly declined in July. According to data released by Destatis, Germany's industrial production fell 1.1% month-over-month (MoM) in July, compared to market expectations of a 0.3% increase.

This figure came in weaker than expected and marks the second consecutive monthly decline in industrial production. On an annual basis, industrial sector activity fell by 1.6% year-over-year (YoY) in July, compared to a decline of 0.5% in June.

The European Central Bank is widely expected to raise its key interest rates by 25 basis points at its upcoming monetary policy meeting on Thursday, with Andrew Kenningham, chief Europe economist at Capital Economics, predicting that the ECB governing council will lift the deposit rate from 2.25 percent to 2.5 percent.