Pound Tumbles Against Euro as Stronger UK GDP Fails to Boost Sterling

The Pound (GBP) edged lower against the Euro (EUR) on Thursday as stronger-than-expected UK GDP failed to generate sustained support for Sterling. The GBP/EUR exchange rate is currently trading around €1.1696, slightly lower on the day.

The release of preliminary estimates for UK economic growth in the second quarter showed a 0.4% expansion during the quarter, slower than the 0.6% expansion recorded in the first quarter but still representing a solid pace of growth.

However, the figures failed to generate much enthusiasm among GBP investors amid doubts that the data would significantly alter expectations for future Bank of England (BoE) monetary policy.

The Euro (EUR), on the other hand, edged higher after the Eurozone's latest industrial production figures beat expectations. Industrial production was unchanged in June, outperforming forecasts for a 0.1% contraction.