The Euro climbs 0.24% against the Pound as ECB officials reinforce data-dependent tightening amid softer UK industrial output.
EUR/GBP rose to 0.8485, up 0.24%, as investors weighed mixed UK economic data against hawkish signals from the European Central Bank. The UK’s GDP grew 0.1% month-over-month in May, matching forecasts, but industrial production fell 0.5%, missing expectations.
The Bank of England is still expected to hike rates by November, with markets pricing in a prolonged restrictive stance due to inflation concerns. Meanwhile, ECB officials, including President Christine Lagarde, emphasized a data-dependent approach, with policymakers ready to act to ensure price stability.
The Euro’s strength persisted despite a contraction in Eurozone industrial production, as hawkish commentary offset weak data. Societe Generale noted the recent decline in EUR/GBP appears overstretched, supporting the pair’s resilience.