EUR/GBP Rises Toward 0.8500 After Weaker-Than-Expected UK GDP Data

EUR/GBP Pushes Higher as UK GDP Contracts More Than Expected

The EUR/GBP currency pair has gained momentum in early Thursday European trading, climbing to around 0.8495, up 0.27% on the day. The move comes after disappointing UK economic data, which weighed on the British Pound.

UK GDP Falls 0.3% in April

The UK Office for National Statistics (ONS) reported that the economy contracted by 0.3% month-over-month in April, a sharper decline than the -0.1% forecast. The contraction follows a 0.2% expansion in March, signaling renewed economic weakness.

Meanwhile, industrial production dropped 0.6% in April, slightly better than the previous -0.7% but missing the market forecast of -0.5%. The data led to selling pressure on the GBP as traders reassess growth expectations.

ECB Holds Rates Steady – Lagarde’s Forward Guidance in Focus

European Central Bank (ECB) President Christine Lagarde reiterated that the central bank is “comfortable” with current interest rates. Her remarks signaled a possible rate hold, which helped stabilize the Euro and improve sentiment toward the currency, especially amid GBP weakness.

Technical Snapshot

• Immediate EUR/GBP resistance: 0.8500
• Key support level: 0.8460
• Momentum indicator: Bullish bias with upside potential if UK economic outlook worsens further

Explore More on Tredu:

• Pound Sterling Forecast After UK GDP
• EUR/GBP Technical Analysis
• What the ECB Decision Means for the Euro