GBP Fails to Capitalize on Strong UK Growth

The British Pound (GBP) failed to capitalize on stronger-than-expected UK growth data in the first half of 2026, with the GBP/EUR exchange rate hovering around the 1.1700 level at the start of the new week.

According to Jane Foley, senior strategist at Rabobank, uncertainty surrounding the autumn Budget and elevated UK bond yields will continue to limit confidence in the Pound, making it difficult for Sterling gains towards the 0.85 EUR/GBP area to sustain themselves.

The Office for National Statistics reported that GDP increased by 0.3% in June, exceeding market expectations of no monthly growth, but services output declined while industrial production and construction saw modest declines.