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Euro loses traction against Pound after weak Eurozone Industrial Production

  • EUR/GBP eases after hitting a fresh year-to-date high of 0.8843 earlier in the European session.
  • UK GDP contracted 0.1% in September, missing expectations for flat growth.
  • Focus turns to Friday’s Eurozone releases, including Employment Change, Q3 GDP and updated growth forecasts.

The Euro (EUR) is easing slightly against the British Pound (GBP) on Thursday after earlier climbing to a fresh year-to-date high of 0.8843. At the time of writing, EUR/GBP is trading around 0.8826, snapping a two-day winning streak as traders reacted to disappointing Eurozone data.

EUR/GBP initially pushed higher in the early European session after a batch of weak United Kingdom (UK) data pressured the Pound. UK Gross Domestic Product (GDP) for September fell 0.1% MoM, against expectations for flat growth and matching the decline recorded in August.

The quarterly figures also softened, with Q3 GDP rising just 0.1% QoQ, below the 0.2% forecast and down from 0.3%. On a yearly basis, the economy expanded 1.3% in the third quarter, slightly below the 1.4% expected and unchanged from the earlier quarter.

Industrial Production dropped 2.0% in September, far worse than the 0.2% decline expected and reversing a 0.3% increase in August. Manufacturing output also disappointed, falling 1.7% MoM compared with a forecast of a 0.3% decline. The broad-based softness in the data reinforced concerns that UK growth momentum remains fragile heading into the final quarter of the year.

This comes on top of the weak labour market numbers released earlier in the week, which had pushed markets to expect a December rate cut from the Bank of England (BoE). Today’s softer GDP and production data strengthen that outlook and add more pressure on the central bank to act if the slowdown continues.

However, the Euro later lost traction after fresh Eurozone numbers also undershot expectations. Industrial Production for September rose only 0.2% MoM, well below the 0.7% consensus but still an improvement from the -1.1% decline in August. On a yearly basis, Industrial Production increased 1.2 percent, falling short of the 2.1 percent forecast and edging only slightly above the 1.1 percent recorded in the previous month.

Looking ahead, attention shifts to a packed Eurozone calendar on Friday. Traders will watch the release of the preliminary Employment Change figures and the first estimate of third-quarter GDP. The European Commission is also set to unveil its latest economic growth projections.

Economic Indicator

Gross Domestic Product s.a. (QoQ)

The Gross Domestic Product (GDP), released by 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 QoQ reading compares economic activity in the reference quarter to the previous quarter. Generally, a rise in this indicator is bullish for the Euro (EUR), while a low reading is seen as bearish.

Read more.

Next release: Fri Nov 14, 2025 10:00 (Prel)

Frequency: Quarterly

Consensus: 0.2%

Previous: 0.2%

Source: Eurostat

Author

Vishal Chaturvedi

I am a macro-focused research analyst with over four years of experience covering forex and commodities market. I enjoy breaking down complex economic trends and turning them into clear, actionable insights that help traders stay ahead of the curve.

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