EUR/GBP Stays Strong Above 0.8700 as France’s Political Situation Improves
The EUR/GBP pair is holding firm near 0.8705 in the early European session. The Euro (EUR) got some support after France’s Parliament avoided a no-confidence vote, which helped calm political tensions in the country. This stability has made traders more confident in the Euro.
At the same time, the British Pound (GBP) is also showing some strength. Recent data from the UK showed a small economic growth of 0.1% in August and a 0.4% rise in industrial production. These results were slightly better than expected, helping the Pound stay steady.
Even though both currencies are showing strength, the Euro is managing to stay above 0.8700. Traders are now watching the UK’s upcoming Autumn Budget, which may include tax changes that could affect the Pound.
Overall, the easing political crisis in France has helped the Euro hold its ground against the Pound, keeping EUR/GBP in positive territory.
Impact :
If France remains stable, EUR/GBP could move higher. But if the UK economy continues to improve, the pair might drop slightly toward the 0.8700 level.
