EUR/GBP declines following UK GDP data

EUR/GBP fell to 0.8540, testing a key support level.
The pair declined despite mixed UK GDP reported during the European sessions.
The softish economic outlook favors additional cuts from the BoE.

Patricio Martín FXStreet

Thursday saw the EUR/GBP pair fall to 0.8540, after mixed Gross Domestic Product (GDP) data from the UK. This comes after Wednesday's movements when the strength of the Pound was suppressed by disappointing UK inflation data.

The UK reported its Q2 Gross Domestic Product (GDP) data, showing a quarterly growth rate of 0.6%, down from 0.7% in Q1. The annual growth rate was 0.9%, an increase from 0.3% in Q1, as expected. Private consumption grew by a weaker-than-anticipated 0.2% quarter-on-quarter, but this was partially balanced by stronger government spending, which increased by 1.4% quarter-on-quarter.

Business investment and net exports negatively impacted growth. Monthly data for June, released simultaneously, indicated a slowdown as the quarter ended: GDP remained unchanged month-on-month, industrial production rose by 0.8%, services decreased by 0.1%, and construction increased by 0.5%. Overall, current data suggests the Bank of England will likely continue cutting rates to support the economy.

EUR/GBP technical analysis

The EUR/GBP shows a mixed trend in recent sessions, with the Relative Strength Index (RSI) moving from mid to high 50s. This suggests a generally bullish or neutral sentiment among traders but with the index now pointing down, it may hint that the sellers are coming. This is backed by the Moving Average Convergence Divergence (MACD) which is showing decreasing red bars, signaling a possible shift towards a bearish sentiment. The volume over the past week has been stable, pointing towards decent liquidity in the pair.

Traders should monitor the 0.8540-0.8590 range as a breakout might fuel sharp movements.

EUR/GBP daily chart

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

AUD/USD bounces back toward 0.6950 on fresh USD supply

AUD/USD bounces back toward 0.6950 in the Asian session on Friday. The US Dollar retreats from 17-month highs as traders take profits off the table ahead of the all-important US Nonfarm Payrolls report. Meanwhile, the Australian Dollar draws support from reviving expectations of a November interest rate hike amid elevated global yields and inflation risks.

USD/JPY struggles near 158.00 as USD retreats ahead of NFP

USD/JPY is struggling for fresh impetus near 158.00, moving away from the top end of its weekly range in the Asian session on Friday, after hotter-than-expected Tokyo CPI and amid a broad US Dollar retreat. Traders reposition themselves ahead of US Nonfarm Payrolls.

Gold fades the earlier optimism; back below $4,200

Gold could not sustain the post-NFP bull run past the $4,200 mark per troy ounce, receding toward the $4,180 region at the end of the week. The precious metal’s inconclusive price action comes amid fresh selling pressure hurting the US Dollar as investors assess the latest NFP data.

Crypto Today: Bitcoin, Ethereum and XRP gains reinforce bullish outlook

Cryptocurrency prices are broadly recovering on Friday, led by Bitcoin moving above $86,000. Ethereum has reaffirmed its bullish outlook, rising above $2,700 while the immediate area at $2,800 caps upside. Meanwhile, Ripple hovers near $1.54.

Week ahead – Fed minutes in the spotlight amid bond market rout

Energy crisis and soaring bond yields to stay in driver’s seat in quiet week. Fed minutes eyed after drop in October rate hike bets. ISM services PMI and Treasury auctions to be watched too. Canadian employment, Japanese wages and ECB minutes also on tap.

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082. The decline reflects a powerful combination of US Dollar strength, geopolitical uncertainty and renewed concerns about Europe's exposure to higher energy prices.