EUR/GBP Stays Strong After German Growth and UK Sales Surprise
The EUR/GBP pair is trading around 0.8410, staying above the 0.8400 level. Two major economic updates came in — one from Germany and one from the UK.
Germany’s economy grew by 0.4% in the first quarter of 2025. This was better than the 0.2% people expected. It gave some strength to the euro.
But there’s also pressure. Reports say Donald Trump is asking the EU to cut tariffs. If they don’t agree, he may bring in new import duties. This has created fresh tension, which could hurt the euro in future.
On the UK side, retail sales rose by 1.2% in April, much higher than the 0.2% expected. This shows people are still spending, which is good for the UK economy and helped the pound.
So right now, both currencies are getting support from strong data — but political risks are also in play.
Impact:
If the UK keeps posting strong numbers, the pound might go up more. But if trade talks between the US and EU go badly, the euro could face pressure.