The Euro climbs 0.24% against the British Pound after ECB officials reaffirm higher-for-longer rates amid uneven UK economic indicators.
EUR/GBP rose to 0.8485, up 0.24% on Thursday, driven by hawkish remarks from European Central Bank officials and mixed UK economic data. The pair extended gains as investors weighed persistent inflation concerns in the Eurozone against softer-than-expected UK figures.
Prior to the move, EUR/GBP had traded near 0.8450 earlier in the week, with markets pricing in a slower pace of rate cuts from the ECB compared to the Bank of England. UK retail sales and business confidence data fell short of forecasts, adding pressure on the GBP.
The immediate reaction saw the Euro outperform, with traders adjusting positions ahead of next week’s ECB policy meeting.