The pound is lower than the euro on Friday.
GbP/EUR fell through pips (up to 0.50%) 1.1107 at 1500 GMT. This week, sterling won 1.24% against the euro.
The currency pair fell below 1,105, but then reached new highs for the week above 1.11. This is the third gain of sterling with an accumulation of 0.29% yesterday.
There was a slight setback in the UK’s fight in opposition to the coronavirus when British Prime Minister Boris Johnson showed that the reopening is expected to slow down. Specifically, the reopening of recreational services will be postponed for at least two weeks and the face mask rule will be extended in indoor enclosed spaces.
The news had little effect on the pound, which benefited from a smart week of opposing earnings, an incredible 11-day winning streak on the US dollar that was losing momentum in the afternoon.
There were a lot of economic knowledge problems to watch in Europe today, all of which combined saw the euro fall. Knowledge was traditionally poor but more combined with already disastrous expectations.
GDP of the euro dominance in the second quarter fell to -12.1% according to the initial reading of the worst economic surprise since the start of the bloc, although it met fully with expectations. In addition to the decline of -3.6% in the first quarter, it officially puts the eurozone in a technical recession. For the region as a whole, the only positive is an accumulation of inflation, which will restrict pressure on the ECB to do more from the point of view of value stability.
In Italy, the top coronavirus-affected country in Europe (GDP fell by -12.4%), higher than the expected -15.5%. In Spain, GDP fell by -18.5% from the -16.5% expected. This is the worst drop in Spain’s GDP. The challenge for Spain is the travel restrictions that continue to affect its tourism industry and limit the possibility of an uptick in the current quarter.