The EUR/GBP currency pair settled above Friday’s low of 0.8392, its weakest level since April 3rd, after the release of the latest GDP growth data out of both the UK and the Euro Area.
The UK posted stronger-than-expected economic growth in the first quarter of 2025, 0.7%, compared to analysts’ forecasts of 0.6%. This followed a 0.1% growth in Q4 of 2024.
In annual terms, UK’s GDP grew 1.3% in the first three months of 2025, edging past the 1.2% projection. Yet, it slowed from the 1.5% increase seen in the previous quarter.
In addition, March’s monthly GDP growth was 0.2%, while economists had expected a flat reading.
Still, the global impact of the Trump administration’s trade war and British businesses warning of a hit from a raise in UK employment taxes could hamper the outlook.
At the same time, the Euro Area’s economy registered a 0.3% quarterly growth in the first quarter of 2025, according to Eurostat’s second estimate released on Thursday. The revised figure fell short of the earlier estimate of 0.4%.
However, in annual terms, the bloc’s GDP grew 1.2% in Q1, in line with both the preliminary report and market expectations.
Employment levels within the bloc also inched higher, with the Eurozone Employment Change posting a 0.3% quarterly rise and a 0.8% YoY increase in Q1.
The EUR/GBP currency pair settled 0.09% lower at 0.8397 on Friday.
The minor Forex pair lost 0.65% for the week.
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