EUR/GBP Gains Slightly Above 0.8600 Ahead of German Inflation and UK GDP

EUR/GBP Gains Slightly Above 0.8600 Ahead of German Inflation and UK GDP

The EUR/GBP currency pair is showing modest gains, rising to 0.8625 in early European trading on Thursday. Support for the Euro (EUR) stems from optimism surrounding a potential EU-US tariff agreement as well as investor anticipation of German inflation data, scheduled for release later in the day.

EU-US Tariff Deal in Focus

The European Union (EU) expressed confidence in finalizing a tariff agreement with the United States “in the coming days.” The move could defuse recent trade tensions and potentially shield EU goods from additional tariffs threatened by US President Donald Trump.

Trump remarked earlier in the week that the EU had turned from being “very tough” to “very nice,” suggesting a more conciliatory tone from both sides and raising expectations of tariff exemptions for the EU.

Upcoming Data to Drive Volatility

Investors are now shifting their attention to:

• German Inflation (June) – due Thursday
• UK Monthly GDP Data (May) – due Friday

These data points are likely to set the tone for the EUR/GBP pair’s next directional move, especially with the UK economy under close scrutiny amid uncertainty over trade and monetary policy outlook.