In the early European session on Monday, the EUR/GBP continues its upward trend, reaching 0.8740.
On Sunday, the US and the EU reached a framework trade agreement in favor of the Euro.
Although they recovered somewhat in July, UK retail sales fell short of forecasts.
In the early hours of Monday's European trading session, the EUR/GBP cross gains strength to approximately 0.8740. Ahead of the deadline, the European Union (EU) agrees to the US trade pact, which increases the euro (EUR) versus the pound sterling (GBP). The main event on Wednesday will be the preliminary reading of the GDP for the second quarter (Q2) from Germany and the Eurozone.
A months-long impasse between two of the largest trading partners in the world came to an end on Sunday when the US and EU agreed on a 15% US tariff on all EU exports. The 30% import taxes that US President Donald Trump had threatened to impose beginning Friday are half of that amount. In the short term, the shared currency may receive some support if concerns over US-EU trade tensions subside.
France's European Affairs Minister Benjamin Haddad stated on X that "the trade agreement struck by the European Commission with the United States may deliver temporary stability to economic operators worried by the rise of American tariffs, but it is unbalanced."
A cooling labor market, a slowdown in UK private sector activity, and lower UK retail sales statistics could all hurt the GBP and act as a headwind for the cross. According to data issued on Friday by the Office for National Statistics (ONS), UK retail sales grew 0.9% month over month in June after declining 2.7% in the previous month. This number was lower than the 1.2% increase predicted by the market.
On Sunday, the US and the EU reached a framework trade agreement in favor of the Euro.
Although they recovered somewhat in July, UK retail sales fell short of forecasts.
In the early hours of Monday's European trading session, the EUR/GBP cross gains strength to approximately 0.8740. Ahead of the deadline, the European Union (EU) agrees to the US trade pact, which increases the euro (EUR) versus the pound sterling (GBP). The main event on Wednesday will be the preliminary reading of the GDP for the second quarter (Q2) from Germany and the Eurozone.
A months-long impasse between two of the largest trading partners in the world came to an end on Sunday when the US and EU agreed on a 15% US tariff on all EU exports. The 30% import taxes that US President Donald Trump had threatened to impose beginning Friday are half of that amount. In the short term, the shared currency may receive some support if concerns over US-EU trade tensions subside.
France's European Affairs Minister Benjamin Haddad stated on X that "the trade agreement struck by the European Commission with the United States may deliver temporary stability to economic operators worried by the rise of American tariffs, but it is unbalanced."
A cooling labor market, a slowdown in UK private sector activity, and lower UK retail sales statistics could all hurt the GBP and act as a headwind for the cross. According to data issued on Friday by the Office for National Statistics (ONS), UK retail sales grew 0.9% month over month in June after declining 2.7% in the previous month. This number was lower than the 1.2% increase predicted by the market.
