EUR/GBP Surges Near 0.8500 on Weak UK GDP – Pound in the Hot Seat!
The EUR/GBP pair moved closer to 0.8500 after weak economic data from the UK put pressure on the British pound. New figures showed that the UK’s Gross Domestic Product (GDP) fell by 0.3% in April, which was worse than expected. This weak performance raised fresh concerns about the UK economy’s health.
At the same time, manufacturing and industrial production in the UK also dropped more than analysts had predicted. Both sectors are important for the country’s growth, so their decline adds more negative sentiment toward the British currency.
In contrast, the euro is getting some support from market expectations that the European Central Bank (ECB) may stay cautious with its rate cuts. This helps push the EUR/GBP pair higher as investors look for safer options.
With weaker UK data and a stronger euro, the EUR/GBP pair is now trading close to the 0.8500 level, showing clear strength in favor of the euro.
Impact: If UK economic data stays weak, the pound could possibly remain under pressure. The EUR/GBP pair might continue to rise if the euro keeps its advantage.