GBP Soars to One-Month High as UK Growth Boosts Sterling

The British Pound to Euro exchange rate (GBP/EUR) reached a one-month high around 1.1700 after receiving support from stronger UK growth data and Prime Minister Andy Burnham's push for a closer relationship with the European Union.

According to the Office for National Statistics, the final estimate for second-quarter GDP was revised higher to 0.5% from the previous estimate of 0.4%, and the UK recorded the strongest growth among G7 economies during the first half of 2026.

RSM UK chief economist Thomas Pugh highlighted the strong first-half performance but remained cautious over the outlook, noting that potential interest rate rises, a sharp increase in inflation, and another tax-raising budget will drag heavily on growth over the winter.