Euro struggles for direction against British Pound despite upbeat German data
EUR/GBP trades around 0.8575 on Thursday at the time of writing, virtually unchanged on the day with a modest gain of 0.05%.
On Thursday, the Euro (EUR) struggled against the British Pound (GBP), trading nearly unchanged at a rate of 0.8575. German economic data provided a glimmer of support for the EUR, with consumer confidence improving and GDP growth revised upward. Meanwhile, the GBP remained relatively static due to a light UK economic calendar. The German consumer confidence index rose to -26.6 in September, beating expectations.
Additionally, Germany's GDP growth was revised to 0.3% quarterly and 1% annually. Business sentiment in Germany also improved, as evidenced by the IFO Business Climate Index reaching its highest level in 12 months. Traders are now focusing on the European Central Bank's Monetary Policy Meeting Accounts, released later in the day, for clues about the Eurozone's interest rate outlook.
Meanwhile, the UK's economic calendar lags behind, leaving the GBP without significant domestic drivers. EUR/GBP is currently trading in a narrow range, with analysts suggesting a potential rebound towards 0.8610 if it breaks above 0.8585. Rabobank forecasts a 3-month EUR/GBP target of 0.87, while Fed Chair Kevin Warsh's speech on Friday will be crucial for determining the USD's next direction.
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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