On Friday, the Pound traded sideways against many of its peers as the GDP release did nothing in the way of bolstering the currency.
UK GDP came in at 0.1% during July and that left investors believing that the economy had stalled. Some called it nothing more than a blip after it increased by 1% during June although expectations suggest that growth is likely to improve during the rest of the year. As a result, the currency finished the day at 1.1712 against the Euro and 1.3833 against the US Dollar according to the Foreign Exchange Market.
It was a mixed day for the Euro as it lost ground against the US Dollar but beat many of its peers. This improvement came following news that the European Central Bank would slow down the speed of pandemic-era bond buying. Furthermore, forecasts for growth and inflation were also lifted by the ECB.
Through trading on Friday, the Us Dollar strengthened following a rise in US Treasury yields which helped to bolster the Greenback. It also gained support from a risk-off mood with inflation and growth concerns as well as the slow down of crisis-era stimulus markets causing investors to seek haven in the currency.