The EUR/GBP cross weakens near 0.8565 on Thursday during the early European session on Thursday. The UK GDP growth figures were in line with the consensus, which has boosted the Pound Sterling (GBP) against the Euro (EUR). The attention will shift to the UK Retail Sales report on Friday, which is projected to increase by 0.5% MoM in July.
The UK economy grew as expected in the second quarter of the year, National Statistics (ONS) showed Thursday. The country’s GDP grew by 0.6% QoQ in Q2, compared to 0.7% growth in the previous reading. The market consensus was at 0.6%. Furthermore, UK GDP expanded at an annual pace of 0.9% YoY in Q2 from a 0.3% expansion in Q1, matching the estimation of 0.9% growth. In response to the upbeat data, the Pound Sterling (GBP) attracts some buyers and creates a headwind for the EUR/GBP cross.
On the Euro front, the European Central Bank (ECB) is expected to cut its deposit rate again through the end of next year. A Bloomberg survey showed that the benchmark would hit 2.25% in December 2025 following six consecutive quarter-point reductions.
The second estimate for the quarterly Eurozone Gross Domestic Product (GDP) growth rate for the second quarter (Q2) came in at 0.3%. The figure was the same as the previous quarter and in line with forecasts, Eurostat reported on Wednesday. The Eurozone Industrial Production was worse than expectations, arriving at -0.1% MoM in June versus -0.9 prior, but below the 0.5% estimated. More By This Author:USD/CAD Rebounds Above 1.3700 On Lower Crude Oil Prices, Traders Await US Retail Sales Data Gold Price Forecast: XAU/USD Trades With Mild Gains Near $2,450, Eyes On US Retail Sales EUR/USD Holds Below 1.1000 Ahead Of Eurozone GDP, US CPI Data
