Traders await further cues from central banks after Q2 GDP data from the Eurozone and UK met expectations.
The EUR/GBP pair remains nearly flat at 0.8543, reflecting muted market reaction to second-quarter GDP figures. Eurozone growth confirmed at 0.4% quarterly and 1.0% annually, while UK growth matched forecasts at 0.4% quarterly and 1.2% annually.
The cross is set to close the week lower, reversing three weeks of gains as profit-taking emerges. Oil price volatility and its inflationary impact remain key concerns for the ECB and BoE’s monetary policy trajectories.
Markets fully price in a September ECB rate hike, with analysts projecting three additional 25-basis-point increases this year, though timing expectations have shifted to quarterly moves.