Traders await UK Q2 GDP figures, expected at 0.4% QoQ, as EUR/GBP stabilizes after German CPI reinforces sticky inflation concerns.
The Euro remains steady against the Pound Sterling, with EUR/GBP trading flat at 0.8540 after two days of losses. The pair briefly dipped following Germany’s July CPI data, which showed persistent inflation, reinforcing caution among traders ahead of key UK economic releases.
Markets expect UK GDP growth of 0.4% quarter-on-quarter for Q2, down from 0.6% in Q1, with the annual rate projected to rise to 1.1%. A miss could pressure Sterling, while an in-line print may limit volatility. The Bank of England’s recent split vote on rates adds uncertainty, with three MPC members favoring a hike due to inflation risks.
Technically, EUR/GBP remains below its 20- and 100-period SMAs, signaling a bearish near-term bias. The pair’s reaction to UK GDP data will likely dictate short-term direction.