EUR/GBP extends downside below 0.8450 despite UK economy stalls in April

The EUR/GBP cross extends the decline around 0.8430 during the early European trading hours on Wednesday. Meanwhile, political uncertainty in Europe exerts some selling pressure on the Euro (EUR) against the Pound Sterling (GBP). 

The latest data published by the Office for National Statistics (ONS) showed on Wednesday that the UK Gross Domestic Product (GDP) stagnated in April after growing 0.4% in March, in line with the market consensus. Meanwhile, the UK Industrial Production came in worse than expected in April, dropping 0.9% on a monthly basis from a 0.2% increase in March. The mixed UK economic data did little to no impact on the Euro as risk sentiment remains to influence the currency pair. 

France's President Emmanuel Macron has dissolved the country's parliament and announced a snap election after exit polls indicated that his Renaissance party would be defeated by the far-right opposition in European parliamentary elections on Sunday, per CNN. The political uncertainty surrounding the Eurozone's second-biggest economy weighs on the shared currency and acts as a headwind for EUR/GBP.

Furthermore, inflation in Germany remained elevated in May, Destatis reported on Wednesday. The German Harmonized Index of Consumer Prices (HICP) rose 2.8% YoY in May, compared to the previous reading and the estimation of 2.8%. On a monthly basis, the HICP figure increased by 0.2% MoM in May, compared to the forecast of 0.2%.