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>>EUR/GBP maintains key gains above 0.8600 as surprising UK GDP figures drag down the pound.

EUR/GBP maintains key gains above 0.8600 as surprising UK GDP figures drag down the pound.

crypthub

1 day ago

EUR/GBP Surpasses 0.8600 After Weak UK GDP

The pair moved above the 0.8600 level on 13 Feb 2025 after the Office for National Statistics reported a 0.3% quarterly contraction. The surprise negative reading sparked immediate selling of the pound against the euro. Traders now view the level as a new support point.

UK Economic Weakness Drives the Move

Growth missed expectations of flat performance, with services showing zero growth and production falling 0.2%. Construction output dropped 0.5%, highlighting a broad slowdown. The data fuels expectations of a more dovish Bank of England stance.

Interest Rate Expectations and Eurozone Contrast

Analysts now anticipate earlier BoE rate cuts, which would reduce the pound’s yield appeal. Meanwhile, Eurozone PMI figures suggest modest resilience, keeping the euro comparatively strong. The narrowing growth differential supports further EUR/GBP upside.

Market Outlook and Key Drivers

Technical analysts note the break of 0.8600 as a key resistance, eyeing targets near 0.8650‑0.8700. Future moves will hinge on upcoming UK and Eurozone data and central‑bank communications. A reversal is possible if stronger UK figures emerge or Eurozone momentum fades.