Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Euro Rate Forecast (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

EUR GBP Slumps Towards Recent Lows on UK Growth

% of readers think this story is Fact. Add your two cents.


The EURGBP exchange rate was lower on Friday after the release of UK GDP figures for November. The British economy improved by 0.9% in November and has now recovered to its pre-pandemic levels. Coronavirus cases are also dropping in the UK with a 33% lower number over the last seven days. Analysts see energy prices weighing on the euro, alongside the central bank’s stubbornness on interest rates.

The EUR to GBP rate was trading at 0.8336 after seeing resistance at the 0.8360 level on the week. The recent lows were at 0.8250 in the exchange rate and that would be this week’s target with UK employment and European data.

UK growth powers sterling as economy recovers virus losses

The UK economy joins only a handful of economies to regain their pre-virus economic output levels. A 0.9% growth rate in November was better than analysts had predicted and sees the UK joining the US, France, Denmark, and Germany in recovering its losses.

The economy was expected to show a 0.4% growth rate for the month of November and that was the month before the Omicron variant spread, so it is expected to be the peak for the year.

Construction reversed a slump that has existed since May, while the manufacturing industry also saw an improvement.

Chancellor Rishi Sunak welcomed the news in a tough week for the government, saying:

“It’s amazing to see the size of the economy back to pre-pandemic levels in November – a testament to the grit and determination of the British people.

“The government is continuing to support the economy, including through grants, loans and tax reliefs.”

There was more hope for the UK economic outlet with the Omicron variant showing signs of slowing. Coronavirus positive tests were 33% lower over the last seven days in the UK and previous forecasts had expected a peak in late-January.

Energy prices still weighing on the European economic outlook

Last year’s surge in wholesale gas prices is still weighing on the European economy and will dampen the recovery.

Increased imports from the United States helped to cool prices, but they still remain elevated due to the Russia and Ukraine tensions.

The prices are expected to hit consumers in 2022 after a European Commission survey showied that households are fearful of prices and less inclined to spend. Wholesale gas prices have surged by 300% over the last year and production has been hampered at European manufacturers, while household bills are expected to rise.

Bank of America analysts forecast that household energy costs could rise 50% this year and that government aid will only offset a quarter of that figure.

“We are talking about not insignificant sums, especially for poorer households,” said Georg Zachmann at energy analysts Bruegel.

The economic calendar is busy for the GBP v EUR this week as Tuesday sees the release of ZEW sentiment surveys for the Eurozone and Germany on Tuesday, alongside the UK employment data. Wednesday brings German and UK inflation rates with the German figure expected to be 5.3%, while the UK figure is expected at 5.2% and both will impact the next central bank rate decisions.

The post EUR GBP Slumps Towards Recent Lows on UK Growth appeared first on Euro Rate Forecast.


Source: https://www.eurorateforecast.com/2022/01/eur-gbp-slumps-towards-recent-lows-on-uk-growth/


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.


LION'S MANE PRODUCT


Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules


Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.



Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.


Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.