EUR/GBP loses ground near 0.8660 following UK GDP data
|- EUR/GBP attracts some sellers around 0.8660 after the UK growth numbers data.
- UK Q3 final GDP came in worse than expected, shrinking 0.1% QoQ versus 0% prior.
- ECB’s Guindos said it’s premature to start easing monetary policy; November’s German PPI came in worse than expected.
The EUR/GBP cross snaps the two-day winning streak during the early European session on Friday. The cross retraces from the multi-week highs of 0.8685 and currently trades near 0.8660, losing 0.13% on the day.
The latest data from the UK Office for National Statistics revealed on Friday that the nation’s Gross Domestic Product (GDP) for the third quarter (Q3) came in at -0.1% QoQ versus 0% prior. On an annual basis, the GDP growth number arrived at 0.3% from the previous reading of 0.6%. Both figures were weaker than market expectations.
Furthermore, November’s UK Retail Sales rose 1.3% MoM from 0% in October, while Retail Sales ex-Fuel climbed 1.3% MoM versus 0.2% previously.
The European Central Bank (ECB) Vice President Luis de Guindos stated on Thursday that it’s premature to start easing monetary policy. He added that the ECB does not foresee a technical recession in the Eurozone and that the central bank would welcome a deal on EU fiscal reform as it would alleviate market uncertainty.
About the data, the German Producer Price Index (PPI) for November dropped 7.9% YoY from 11% fall in the previous reading, worse than the market expectation of a 7.5% decline. Additionally, the German Gfk Consumer Confidence Survey for January came in at -25.1 versus -27.6, above the consensus of -27.0.
Later on Friday, the Consumer Confidence from France, Spain, and Italy will be due. However, these figures might have a minimal impact on the markets ahead of the holiday season.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.