Euro Under Pressure Despite Strong German GDP Figures

The euro remains under pressure against the British pound despite stronger-than-expected GDP figures from Germany. The European Central Bank's easing cycle and the resilience of the UK economy are taking center stage, outweighing the positive surprise in German data.

Germany's GDP grew by 0.2% in the second quarter of 2025, beating forecasts of a 0.1% contraction. However, this did little to support the euro, which stayed near multi-month lows against the pound.

The Bank of England's cautious approach to rate cuts is supporting the pound, while the ECB has already reduced rates twice this year and may cut further. This interest rate differential makes the pound more attractive to investors.