EUR/GBP Rebounds Above 0.8450 Ahead Of Eurozone Industrial Production Data

The EUR/GBP cross extended its rebound to 0.8455 during early European trading on Thursday. The cross rebounded from around 0.8418, the lowest level since August 2022, as stagnant monthly GDP data and weak industrial production data for April dragged GBP lower against the euro.

On Wednesday, data released by the Office for National Statistics (ONS) showed that the UK economy stagnated in April after growing 0.4% in March. The data was in line with market expectations. Meanwhile, the UK industrial production rate fell to 0.9% on a monthly basis in April from a growth of 0.2% in March, worse than the expected -0.1%.

On the euro side, hawkish rate cuts from the European Central Bank (ECB) appeared to support the euro as ECB President Christine Lagarde reduced expectations for another rate cut in July and preferred to wait for the upcoming data. Eurozone industrial production data for April will be released later Thursday and is expected to rise 0.2% on month from 0.6% in March. Signs of weakness in the eurozone manufacturing sector could weigh on the euro and limit upside in the EUR/GBP cross.

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