The Euro gains against the Pound after UK second-quarter GDP data signals slower economic expansion.
The EUR/GBP pair climbed to 0.8540 in early European trading on Thursday, extending gains as UK economic growth slowed in the second quarter. The British Pound weakened following the release of softer GDP figures, reducing demand for the currency.
UK GDP growth decelerated in Q2, falling short of expectations and marking a slowdown from the previous quarter. The Euro, meanwhile, remained supported by relative economic stability in the eurozone, contrasting with the UK’s cooling expansion.
Traders are monitoring the cross for further signs of divergence between the two economies, with the Pound under pressure amid growing concerns over domestic growth prospects.