EUR/GBP steadies as markets weigh Eurozone growth and UK Retail Sales
- EUR/GBP holds steady above 0.8670, as markets weigh subdued Eurozone Q2 growth and the UK’s mixed Retail Sales data.
- Eurozone Q2 GDP expanded 0.1% QoQ and 1.5% YoY, confirming sluggish growth, while employment rose 0.1% QoQ and 0.6% YoY.
- UK Retail Sales rose 0.6% in July, but annual growth slowed to 1.1% with prior figures revised lower.
The Euro (EUR) edges higher against the British Pound (GBP) on Friday, with EUR/GBP trading around 0.8680 during the European session. The cross is stabilizing after two straight days of losses as markets digest a mixed set of UK Retail Sales and lingering fiscal concerns, alongside subdued Eurozone growth figures.
Eurostat’s final Q2 release confirmed that the Eurozone economy is expanding at only a modest pace. Gross Domestic Product (GDP) rose 0.1% QoQ, exactly as expected and unchanged from the earlier estimate, while annual growth picked up slightly to 1.5% from 1.4%. Employment rose by 0.1% in the second quarter, in line with estimates, while annual job growth slowed to 0.6% from 0.7%. The slowdown follows a Q1 boost from tariff front-loading, while persistent uncertainty around US trade measures has encouraged businesses and households to adopt a more cautious stance.
In the UK, July Retail Sales delivered a mixed performance. Headline sales rose 0.6% MoM, beating the 0.2% consensus, though the previous figure was revised sharply lower to 0.3% from 0.9%. On an annual basis, sales increased 1.1%, undershooting expectations of 1.3% and down from a revised 0.9% previously. Excluding fuel, sales rose 0.5% MoM, just above the 0.4% forecast but below the 0.6% prior, while annual growth held at 1.3%, slightly softer than the 1.8% earlier estimate. The details highlight resilient short-term spending but also reveal downward revisions that temper optimism, keeping the outlook for household demand subdued.
Sterling has managed to stabilise but remains under pressure after a volatile week in UK bond markets. Long-dated gilt yields briefly surged to their highest levels since the late 1990s, reviving worries about debt sustainability before easing back on Friday. Analysts at UBS maintain a cautious view on Sterling, projecting the EUR/GBP cross to climb toward 0.8800 by year-end. In the near term, the bank highlights 0.8650 as a key support level; a sustained hold above this area keeps the bias tilted higher.
On the upside, resistance is seen around 0.8700, a break of which would reinforce momentum toward the 0.8750-0.8800 zone. Failure to defend 0.8650, however, could expose the cross to a corrective pullback, with secondary support near 0.8620. Overall, UBS’s technical stance underscores that risks remain skewed toward euro strength as long as fiscal uncertainty continues to weigh on Sterling.
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 | -0.38% | -0.30% | -0.18% | -0.15% | -0.48% | -0.49% | -0.36% | |
| EUR | 0.38% | 0.09% | 0.10% | 0.23% | -0.01% | -0.09% | 0.02% | |
| GBP | 0.30% | -0.09% | 0.04% | 0.14% | -0.08% | -0.19% | -0.03% | |
| JPY | 0.18% | -0.10% | -0.04% | 0.10% | -0.21% | -0.26% | 0.00% | |
| CAD | 0.15% | -0.23% | -0.14% | -0.10% | -0.27% | -0.34% | -0.18% | |
| AUD | 0.48% | 0.01% | 0.08% | 0.21% | 0.27% | -0.11% | 0.04% | |
| NZD | 0.49% | 0.09% | 0.19% | 0.26% | 0.34% | 0.11% | 0.17% | |
| CHF | 0.36% | -0.02% | 0.03% | -0.00% | 0.18% | -0.04% | -0.17% |
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).
Recommended Articles
