EUR/GBP holds gains near 0.8700 as traders expect ECB to keep rates unchanged

EUR/GBP appreciates as the ECB's September policy meeting indicates the policy stance remains consistent.
The Euro may face challenges amid the ongoing political struggle in France.
BoE Mann said that policy must remain restrictive for longer, while inflation remains stubborn.

Akhtar Faruqui FXStreet

EUR/GBP extends its gains for the second successive day, trading around 0.8700 during the Asian hours on Friday. The currency cross gains ground as the Euro (EUR) receives support after the European Central Bank’s (ECB) September policy meeting showed that policymakers broadly agreed the current policy stance remains consistent with the 2% medium-term inflation target. ECB members concurred that current interest rates are sufficiently strong to handle potential shocks amid two-sided inflation risks.

However, the EUR/GBP cross may weaken as the Euro could struggle due to the ongoing political turmoil in France, the second-largest Economy in the Eurozone. The resignation of French Prime Minister Sebastien Lecornu has heightened investor concerns over the country’s fiscal deficit. Lecornu is continuing negotiations with the opposition, while President Emmanuel Macron is expected to appoint a new prime minister by Friday.

However, the upside of the EUR/GBP cross could be restrained as the Pound Sterling (GBP) receives support from the cautious tone surrounding the Bank of England’s (BoE) monetary policy outlook. The BoE policymaker Catherine Mann noted on Thursday that the monetary policy must remain restrictive for longer to create an environment conducive to growth. "Inflation remains persistent and the outlook for growth remains modest," Mann added as per Reuters.

In a letter shared by the United Kingdom’s (UK) finance ministry on Wednesday, Chief Secretary to the Treasury James Murray said that the administration would not allow agencies to use emergency funds to fund pay rises, aiming to restrict the wage spiral. “This prudent but tough approach to public spending is what will help build a stable economy," Murray added.

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the US Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.09%	-0.09%	-0.09%	-0.02%	-0.17%	0.04%	-0.14%
EUR	0.09%		0.04%	-0.09%	0.06%	-0.03%	-0.10%	0.04%
GBP	0.09%	-0.04%		-0.08%	-0.00%	-0.07%	0.09%	-0.04%
JPY	0.09%	0.09%	0.08%		0.19%	0.01%	0.16%	0.07%
CAD	0.02%	-0.06%	0.00%	-0.19%		-0.20%	0.04%	-0.03%
AUD	0.17%	0.03%	0.07%	-0.01%	0.20%		0.18%	0.04%
NZD	-0.04%	0.10%	-0.09%	-0.16%	-0.04%	-0.18%		-0.14%
CHF	0.14%	-0.04%	0.04%	-0.07%	0.03%	-0.04%	0.14%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

AUD/USD regains mild traction, falters near 0.7150

AUD/USD gathers some steam and manages to flirt with the 0.7150 level on Thursday. However, the pair has retraced some of Wednesday’s significant pullback due to renewed selling pressure on the Greenback and a slight improvement in risk sentiment following hopes of a deal in the Middle East. Wrapping up the Australian docket, the RBA’s Hauser will speak early on Friday.

USD/JPY: Japanese Yen coiled at the line, leaning on everyone but Japan

The Yen is doing very little, and that stasis is the whole story. USD/JPY sits glued near 160.00 not because Japan has found new strength, but because two outside forces are fighting to a draw over it: a US rate complex that keeps the dollar bid, and a Ministry of Finance that refuses to let the line break.

Gold puts its 200-day SMA to the test near $4,420

Gold keeps the bullish stance in place in the latter part of Thursday’s session, although a convincing break above the key $4,500 mark per troy ounce still remains elusive. The precious metal’s advance comes amid the resurgence of some selling interest around the Greenback, improving risk sentiment, and declining US Treasury yields across the board.

Bitcoin falls below $64K as demand turns negative, short-term holders' selling intensifies

Bitcoin has fallen below $64,000 on Thursday amid weakening market demand and mounting selling pressure from short-term holders. The leading cryptocurrency slipped toward the $63,000 level amid a broader risk-off environment, with several key metrics signaling one of the most challenging periods of the current market cycle.

Nonfarm payrolls: Testing the limits of Fed policy patience

The upcoming nonfarm payrolls report for May will provide the final update on the US labor market before Kevin Warsh attends his first policy meeting as the new Fed Chair later this month.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.