German Q2 GDP growth revised up to 0.3% quarterly and 1% annually, but EUR fails to gain against GBP amid risk aversion.
The Euro (EUR) fell for a fourth straight session against the British Pound (GBP), trading near weekly lows at 0.8550 despite stronger-than-expected German GDP data. Germany’s economy grew 0.3% in Q2, revised up from a preliminary 0.2%, matching Q1’s pace, while annual growth was adjusted to 1% from 0.9%.
The upward revision follows a weak first quarter, where annual growth stood at just 0.4%. Markets now await Germany’s August IFO Business Climate Index, expected to show slight improvement in current conditions and near-term expectations.
The Pound (GBP) strengthened amid risk aversion, driven by escalating Middle East tensions and new US sanctions on Iran. Analysts note Sterling’s resilience in low-volatility environments, supported by its high carry appeal among G10 currencies.