Euro holds steady against Pound Sterling despite steady UK growth
EUR/GBP is trading sideways on Thursday near the 0.8540 level, with the Euro (EUR) steadying after three consecutive days of losses despite the Pound Sterling (GBP) gaining support from UK economic growth data that was broadly in line with expectations.
The Euro (EUR) remained relatively stable against the Pound Sterling (GBP) on Thursday, hovering around the 0.8540 level. Despite UK economic growth data indicating steady growth, the Euro experienced a respite after three days of decline. UK GDP grew by 0.4% in the second quarter, aligning with expectations, although this was slower than the previous quarter's pace.
A stronger-than-anticipated June reading added support to the Pound Sterling. However, industrial and manufacturing production data in June fell short of market expectations, partially offsetting the positive effect of the UK data. Both Industrial Production and Manufacturing Production declined more than anticipated, with revised figures from the previous month also indicating a slowdown.
This mixed economic news highlights the influence of higher energy prices due to the Middle East conflict. The next important Eurozone data releases are scheduled for Friday, with the focus on the second-quarter GDP and employment figures. Technical analysis suggests that EUR/GBP is currently near a support cluster around 0.8546 and 0.8553, influenced by moving averages.
Meanwhile, GBP/USD showed resilience and moved closer to a three-month high near 1.3560, fueled by a stronger retracement in the US Dollar amid speculation of Bank of Japan intervention. Despite persistent Middle East tensions, gold prices rebounded towards $4,400 per troy ounce as investors reassessed expectations of a possible Federal Reserve interest rate hike.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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