The UK economy delivered a positive surprise, with GDP growing by 0.3% month-on-month, well above the initial 0.1% forecast. This stronger-than-expected reading has helped provide additional support for the pound against the euro.
Latest market insights:
- Growth was driven by car production, while the services sector, a key part of the UK economy, also expanded more than expected in November, reinforcing improving momentum.
- In the three months leading up to November, the UK economy grew by 0.1%, reinforcing signs of gradual progress. While growth remains modest, it suggests the UK is moving steadily in the right direction.
- There were also encouraging signals from industrial and manufacturing output, which came in stronger than expected. In fact, these are the best readings since April last year, following several months of contraction. It’s a positive sign that the UK economy may be starting 2026 on firmer footing, which could help support sterling in the months ahead.
As always, periods like this can create both risks and opportunities in the FX markets. If you have upcoming currency requirements or would like to discuss how these events could affect your plans, we’re here to help, contact Lumon on +44 (0)204 506 5672 for a free, no-obligation conversation and discover what options you have available to help.
