EUR Holds Ground Against GBP Amid Modest Gains
The EUR/GBP exchange rate has seen moderate gains on Friday, but remains within its recent ranges. The Eurozone data released today showed that German wholesale prices bounced back by 0.2% in July, following a 0.7 contraction in June. However, this impact on the Euro has been negligible.
The Sterling retreated against its main peers yesterday as data revealed that the UK's GDP growth slowed in Q2, and Industrial Production contracted unexpectedly in June amid a sharp drop in manufacturing output.
Rabobank strategists expect the Bank of England to keep interest rates on hold through the end of the year, which could weigh on the Pound. As investors turn their attention to fiscal developments ahead of the October 28 UK budget, the GBP may find itself under pressure due to concerns over government spending.
The EUR/GBP pair is struggling to break above 0.8550 and remains on track for a 0.2% weekly loss.