UK second-quarter GDP growth matched expectations at 0.4%, but weak factory data capped GBP gains against the Euro.
EUR/GBP traded sideways near 0.8540 on Thursday, stabilizing after three days of losses despite UK GDP growth aligning with forecasts. The UK economy expanded 0.4% in Q2, matching consensus but slowing from the prior quarter’s pace.
June’s firmer-than-expected monthly GDP reading provided slight support for the Pound, though disappointing industrial and manufacturing production data weighed on sentiment. Both sectors contracted more than anticipated, with prior-month figures revised downward, highlighting pressure from elevated energy costs.
Markets now await Eurozone flash GDP and employment data for Q2, with expectations set at 0.4% growth. Any deviation could drive the next move in EUR/GBP, which remains technically constrained below key moving averages.