Pound Suffers Amid Weaker UK Data as Eurozone Inflation Looms

The Pound-Euro exchange rate fell to a 12-week low last week due to weaker UK data and upbeat Eurozone numbers. The GBP/EUR rate dropped around 0.4% on the week, trading at €1.1615 as of writing.

UK consumer confidence hit a three-year low, while UK government borrowing rose sharply in August. The services PMI fell more than forecast to 51.7 in September from 52.5 in August, further weakening Sterling.

The Eurozone's latest manufacturing and services PMIs exceeded expectations, pointing to stronger-than-forecast activity across the bloc. However, German consumer confidence deteriorated more than expected at the end of the week.