EUR/GBP Range-Bound as UK Data Meets Expectations

The EUR/GBP exchange rate is trading steadily around 0.8540 on Thursday, following three consecutive sessions of Euro losses. The Pound Sterling has received modest support from UK economic data that met market expectations.

According to the UK Office for National Statistics, the economy expanded 0.4% quarter-on-quarter in the second quarter, aligning with forecasts. However, growth slowed compared to the previous quarter.

A stronger-than-expected monthly GDP reading for June provided additional support for the Pound, limiting EUR/GBP's recovery. Despite this, disappointing factory data suggest that higher energy costs linked to Middle East tensions are continuing to weigh on economic activity.

Attention now shifts towards Friday's Eurozone economic releases, particularly the preliminary second-quarter GDP figures and employment data. If these figures broadly match expectations, EUR/GBP could remain range-bound as neither currency gains a decisive fundamental advantage.