Pound Tumbles to 12-Week Low Amid Weaker UK Data

The Pound-to-Euro exchange rate has fallen to a 12-week low due to weaker UK data and upbeat Eurozone numbers.

At the time of writing, GBP/EUR was trading at €1.1615, down around 0.4% on the week.

The decline in Sterling was triggered by a drop in UK consumer confidence to a three-year low, followed by a sharp rise in government borrowing and a decrease in services PMI.

However, Sterling recovered some ground towards the end of the week after Bank of England Governor Andrew Bailey warned that high energy prices could make it difficult for the central bank to avoid raising interest rates.

In contrast, the Euro found support from stronger-than-expected Eurozone manufacturing and services PMIs, as well as a rise in business sentiment in Germany's IFO survey.