EUR/GBP consolidates near 0.8430 as markets digest UK economic expansion
UK preliminary GDP surprises with 0.7% quarterly growth in Q1 2025
All eyes turn to Eurozone GDP release for potential market-moving data
The Trump coin crypto nameEUR/GBP currency pair demonstrates resilience above the 0.8400 psychological level during Thursday's European trading session. Market participants witnessed the Pound Sterling (GBP) gain modest traction following the publication of robust UK economic growth statistics. The financial community now shifts its focus toward the impending release of preliminary Eurozone Gross Domestic Product (GDP) figures for the first quarter.
According to the Office for National Statistics (ONS), the UK economy expanded by 0.7% quarter-over-quarter during the first three months of 2025. This performance notably exceeded both the previous quarter's modest 0.1% growth and market expectations that had anticipated a 0.6% increase. The data suggests the UK economy may be gaining momentum as it enters the new year.
Year-over-year comparisons reveal the UK economy grew by 1.3% in Q1 2025, slightly below the prior 1.5% reading but surpassing consensus estimates of 1.2%. March's monthly GDP figure came in at 0.2%, building on February's 0.5% expansion and significantly outperforming expectations of stagnant growth. These positive economic indicators provided immediate, albeit limited, support for the British currency.
Across the Channel, market participants continue to price in potential monetary policy easing by the European Central Bank (ECB). The prevailing sentiment suggests policymakers may implement interest rate reductions as early as June, with current pricing indicating approximately 90% probability of such action. Market expectations further anticipate one or two additional cuts in subsequent months, reflecting confidence that recent US trade measures won't substantially elevate inflationary pressures across the Eurozone.
Currency traders now await the Eurozone's Q1 GDP release with heightened interest, as the data could significantly influence near-term EUR/GBP price action. The cross's ability to maintain its current levels suggests markets may have already priced in much of the UK's positive economic news, leaving room for potential Euro upside should Eurozone data surprise to the upside.
