Euro remains almost stable against British Pound after strong UK GDP data

• EUR/GBP trades steadily at around 0.8350 after UK Q3 and September GDP data.
• The UK Q3 GDP growth remained stronger at 0.7%.
• Investors shift their focus to the UK labor market and the inflation data.

The Euro (EUR) remains steady at around 0.8350 against the British Pound (GDP) in the European trade on Thursday, as the latter trades almost stable after the release of the United Kingdom (UK) Q3 and September Gross Domestic Product (GDP) data.

The Office for National Statistics (ONS) has reported that the economic growth remained stronger at 0.7%, as expected, against 0.5% seen in the second quarter this year. On an annualized basis, the growth rate was also in line with estimates at 1.9%, faster than the previous reading of 1.4%.

Month-on-Month (MoM) GDP growth in September was at 0.2%, while it was expected to remain flat again. The August GDP data was revised lower from 0.1%.

Signs of strong UK economic growth are expected to provide relief to Bank of England (BoE) policymakers at a time when the central bank has entered a fresh monetary tightening cycle to tame accelerating price pressures.

Going forward, the major trigger for the British Pound will be the UK labor market data for three months ending September and the Consumer Price Index (CPI) data for October, which will be released next week. Both economic indicators are expected to have a significant impact on expectations of BoE’s monetary policy outlook.