EUR/GBP rises above 0.8350 ahead of Eurozone GDP, UK Autumn Forecast Statement

EUR/GBP appreciates as the British Pound faces challenges ahead of the UK’s Autumn Forecast Statement.
UK Chancellor of the Exchequer, Rachel Reeves, plans to implement approximately £40 billion in fiscal measures, primarily through tax increases.
Traders await the release of preliminary Gross Domestic Product (GDP) data from Germany and the Eurozone on Wednesday.

Akhtar Faruqui FXStreet

EUR/GBP recovers its recent losses from the previous session, trading near 0.8320 in the European session on Wednesday. This downward trend in the EUR/GBP cross could be attributed to a weaker Pound Sterling (GBP) ahead of the UK’s upcoming Autumn Forecast Statement. This will mark the first budget announcement by a Labor government in over 15 years.

Reuters cited government sources, UK Chancellor of the Exchequer, Rachel Reeves plans to implement approximately £40 billion ($52 billion) in fiscal measures, primarily through tax increases, to fulfill her commitment to fund day-to-day government expenses.

The Euro may face headwinds as the European Central Bank (ECB) is widely expected to lower its Deposit Facility Rate again. Current money market data suggests nearly a 50% probability of a 50 basis point rate cut in the December meeting.

Investors will pay close attention to preliminary Gross Domestic Product (GDP) data from Germany and the Eurozone, as well as Germany’s preliminary Harmonized Index of Consumer Prices (HICP) figures, all set for release on Wednesday.

In recent days, ECB policymakers have expressed mixed views on monetary policy. Pierre Wunsch, Governor of the National Bank of Belgium, indicated that there is no urgency to accelerate rate cuts and even suggested that a modest rate could be sustained. In contrast, Mario Centeno, Governor of the Bank of Portugal, supported the idea of a potential 50 basis point rate cut in December.

Economic Indicator

Gross Domestic Product s.a. (YoY)

The Gross Domestic Product (GDP), released by the Eurostat on a quarterly basis, is a measure of the total value of all goods and services produced in the Eurozone during a certain period of time. The GDP and its main aggregates are among the most significant indicators of the state of any economy. The YoY reading compares economic activity in the reference quarter compared with the same quarter a year earlier. Generally speaking, a rise in this indicator is bullish for the Euro (EUR), while a low reading is seen as 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 extends rebound to $4,500 as US yields edge lower

Gold (XAU/USD) preserves its recovery momentum following Wednesday's slide and tests the $4,500 mark in the second half of the day on Thursday. While US-Iran uncertainty remains, easing tensions between Lebanon on Israel seems to be helping the market mood improve, causing the USD to lose strength alongside falling US T-bond yields and opening the door for a decisive rebound in XAU/USD.

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.