As European currencies get a boost from Harris’ debate performance, GBP/USD reached above 1.310. However, it is facing challenges in maintaining its gains after disappointing UK GDP figures, according to ING’s FX strategist Francesco Pesole.
ECB Meeting Could Propel EUR/GBP Higher
“July’s UK GDP growth of 0.0% MoM fell short of the expected 0.2%, while industrial production remained weak at -1.2% compared to the consensus of -0.1%. This data questions the idea of UK ‘exceptionalism’ and could impact the Bank of England’s decisions,” Pesole explains.
“EUR/GBP seems to have found support after hitting a low. Our analysis suggests that the upcoming ECB meeting might lead to a short-term uptrend, with a potential move towards 0.850 by the end of September.”
**Analysis:**
The recent developments in the currency markets, specifically GBP/USD and EUR/GBP pairs, highlight the impact of political events and economic data on exchange rates. While GBP/USD initially strengthened post-debate, weak UK GDP figures caused some retraction. On the other hand, EUR/GBP is showing signs of stability and potential growth ahead of the ECB meeting. Investors should monitor these trends closely to make informed decisions about their portfolios.