GBP/EUR Exchange Rate Dips as Markets Question UK Growth Outlook

The Pound to Euro exchange rate declined on Thursday as investors reacted to the UK's latest GDP release.

At the time of writing, the GBP/EUR exchange rate was trading at around €1.1698, down marginally from Thursday’s opening levels.

The 0.4% growth in the second quarter of the year may not be enough to alter expectations for future Bank of England policy, as investors question whether this data will have a lasting impact on the UK economy.

Higher energy costs and geopolitical tensions are also expected to present fresh challenges for the UK economy in the second half of the year.