EUR/GBP Drops Near 0.8700 as France Delays Pension Reforms
The Euro to British Pound (EUR/GBP) pair fell close to 0.8700 in early European trading as political worries in France weighed on the Euro. The decline came after France’s Prime Minister Sébastien Lecornu said the government plans to delay pension reforms until after the 2027 presidential election.
This move is meant to reduce political tension, but it has raised doubts about the government’s ability to pass key budgets and manage upcoming challenges. Traders are now watching how this delay could affect France’s economy and the overall strength of the Euro.
Meanwhile, the British Pound is also facing mixed signals. Recent UK job data showed a rise in unemployment and slower wage growth, which increases expectations that the Bank of England (BoE) might cut interest rates soon. These signs have limited the Pound’s upside movement for now.
Overall, the pair remains under pressure as both currencies face uncertainties—political instability in France and weaker economic data in the UK.
Impact :
EUR/GBP might stay weak near 0.8700 if French political issues continue, though a possible BoE rate cut could also balance Pound gains.
