EUR/GBP maintains position near 0.8300 following German GDP data

EUR/GBP holds its gains following Germany’s Gross Domestic Product data released on Tuesday.
Germany’s economy shrank by 0.2% QoQ in Q4 of 2024, compared to a 0.1% expansion in the third quarter.
BoE Monetary Policy Committee member Swati Dhingra advocates for a swift easing of policy restrictiveness to stimulate consumption.

Akhtar Faruqui FXStreet

EUR/GBP continues its upward momentum for the second consecutive day, hovering around 0.8290 during European trading hours. The currency cross remains stable following the release of Germany’s Gross Domestic Product (GDP) data on Tuesday.

Germany’s economy contracted by 0.2% quarter-on-quarter in the fourth quarter of 2024, aligning with preliminary estimates and following a 0.1% expansion in the previous quarter. This downturn was largely driven by a negative contribution from net trade, with exports falling 2.2% while imports rose by 0.5%. On an annual basis, the economy shrank by 0.2% in Q4, confirming initial projections and marking the sixth straight quarter of decline.

The EUR/GBP cross remains under pressure due to the Euro’s (EUR) weakness following Germany’s federal election, where no single party secured a clear majority — a situation that could further complicate growth prospects in the already struggling economy.

Friedrich Merz, leader of the Christian Democratic Union of Germany (CDU), is poised to become Germany’s Chancellor after winning the largest share of votes. However, forming a coalition government is expected to be challenging and could delay policy implementation.

Investors are now looking for fresh signals on the Bank of England’s (BoE) monetary policy direction for the year ahead. Earlier this month, the BoE lowered its key borrowing rate by 25 basis points (bps) to 4.5%, indicating a gradual approach to policy easing.

However, BoE Monetary Policy Committee (MPC) member Swati Dhingra has advocated for a more aggressive monetary expansion, citing weak demand. In her speech at Birkbeck on Monday, Dhingra expressed concern that the current pace of rate cuts—interpreted as 25 bps per quarter—could still leave monetary policy overly restrictive by the end of 2025.

Economic Indicator

Gross Domestic Product (QoQ)

The Gross Domestic Product released by the Statistisches Bundesamt Deutschland is a measure of the total value of all goods and services produced by Germany. The GDP is considered as a broad measure of the German economic activity and health. A high reading or a better than expected number has a positive effect on the EUR, while a falling trend is seen as negative (or bearish).

AUD/USD eyes 0.7150 barrier nine-day EMA

AUD/USD inches higher after registering modest losses in the previous day, trading around 0.7130 during the Asian hours. The technical analysis of the daily chart indicates that the pair is moving sideways within the rectangle pattern, suggesting a consolidation as neither the bulls nor the bears have enough momentum to take control of the market.

USD/JPY trades below 160.00 intervention threshold; bullish bias intact

The USD/JPY pair attracts some sellers during the Asian session amid fears that authorities will step in again to prop up the Japanese Yen. Furthermore, the Israel-Lebanon truce prompts some profit-taking around the US Dollar and exerts downward pressure on the currency pair.

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’s massive storm is back: Why the sell-off is far from over

Bitcoin price action over the last few weeks has felt less like a normal, healthy correction and more like a slow grinding crash that continues to wreak havoc on holdings and trading accounts. And everything suggests that the dramatic crash isn’t over.

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.