EUR/GBP steady as French political calm supports Euro, UK fiscal issues weigh
- The Euro stays firm after the French government survived two no-confidence votes.
- The British Pound is underpinned by modest UK growth but weighed down by fiscal concerns.
- Market sentiment favors the Euro as political calm returns in France.
EUR/GBP trades steadily around 0.8700 on Friday at the time of writing, supported by improved political sentiment in France after Prime Minister Sébastien Lecornu survived two no-confidence motions in parliament. The vote outcome eased tensions following weeks of political turmoil, providing temporary support to the Euro (EUR) against the British Pound (GBP).
In the United Kingdom (UK), recent data showed the economy expanding slightly, though underlying pressures remain. The Office for National Statistics (ONS) reported on Thursday that Gross Domestic Product (GDP) rose by 0.1% MoM in August after a 0.1% contraction in July, while Industrial Production increased by 0.4% MoM. These results point to a mild recovery in manufacturing activity. However, the relief could be short-lived as Chancellor of the Exchequer Rachel Reeves confirmed that the Autumn Budget will include new tax hikes aimed at restoring fiscal stability, a move likely to weigh on domestic demand.
In the Eurozone, inflation data released earlier this week showed that price pressures remain stable but still above target. The Harmonized Index of Consumer Prices (HICP) rose 2.2% YoY in September, while core inflation stood at 2.4%, the highest since April. Several European Central Bank (ECB) officials have reiterated that monetary policy is likely close to its neutral point, suggesting limited room for further rate cuts.
Overall, the combination of political stabilization in France and lingering fiscal concerns in the UK continues to favor the Euro, keeping EUR/GBP well anchored around the 0.8700 level.
Euro Price Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the British Pound.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.08% | 0.06% | -0.02% | -0.14% | -0.06% | -0.02% | -0.12% | |
| EUR | -0.08% | -0.03% | -0.09% | -0.21% | -0.15% | -0.11% | -0.20% | |
| GBP | -0.06% | 0.03% | -0.06% | -0.19% | -0.11% | -0.07% | -0.17% | |
| JPY | 0.02% | 0.09% | 0.06% | -0.14% | -0.06% | -0.03% | -0.12% | |
| CAD | 0.14% | 0.21% | 0.19% | 0.14% | 0.07% | 0.13% | 0.02% | |
| AUD | 0.06% | 0.15% | 0.11% | 0.06% | -0.07% | 0.04% | -0.05% | |
| NZD | 0.02% | 0.11% | 0.07% | 0.03% | -0.13% | -0.04% | -0.10% | |
| CHF | 0.12% | 0.20% | 0.17% | 0.12% | -0.02% | 0.05% | 0.10% |
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).
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