German Q2 GDP growth and IFO business sentiment beat forecasts, but the Euro fails to gain against the Pound Sterling.
EUR/GBP traded around 0.8560 on Tuesday, showing little movement despite stronger-than-expected German economic data. Germany’s second-quarter GDP rose 0.3% quarter-on-quarter, exceeding the 0.2% forecast, while the annual rate climbed to 1%. The IFO Business Climate index also surprised, jumping to 88.8 in August from 86.7, above the 87.2 consensus estimate.
The Euro’s lack of momentum comes as the Pound Sterling holds near a six-month high against the US Dollar, supported by a softer Greenback. While the German data slightly reduces the likelihood of further European Central Bank easing, it has not been enough to shift the EUR/GBP pair, which remains constrained by technical resistance levels.
Technical analysis shows EUR/GBP trading just below its 20 and 100-period Simple Moving Averages, with resistance at 0.8562. The Relative Strength Index remains near 50, indicating subdued momentum and a lack of clear directional bias.