EUR/GBP stays steady near 0.8750 as traders watch German data
The EUR/GBP currency pair remained stable on Thursday, trading close to the 0.8750 level. Investors are waiting for the latest German consumer confidence report, which is expected to provide fresh direction for the Euro.
Earlier this week, the Euro faced pressure after Germany’s IFO Business Climate Index fell sharply. The index dropped to 87.7 in September from 89.0 in August, missing expectations and showing that business sentiment in Europe’s largest economy is weakening. This decline added concerns about slowing growth in the Eurozone.
On the UK side, the British Pound has been supported but remains cautious. Signs of a cooling labor market and weaker global demand suggest that the Bank of England (BoE) could lean toward a more dovish stance in the coming months. However, policymakers remain careful about cutting interest rates too early while inflation risks still exist.
With both currencies under pressure from economic uncertainty, the EUR/GBP pair is likely to trade sideways until more clear signals emerge. Traders are mainly focused on the upcoming German consumer sentiment data, which could spark short-term volatility.
Impact:
If German consumer confidence improves, the Euro could strengthen, pushing EUR/GBP higher. A weaker reading might weigh on the Euro and support the Pound.