Sterling Advances as UK GDP Beat Supports EUR/GBP Downtrend

Key Moments

EUR/GBP traded around 0.8741 after rebounding from an intraday low near 0.8728.
UK GDP grew 0.1% QoQ in Q3 2025, confirming the preliminary estimate and easing from 0.2% in Q2.
BoE’s cautious easing stance contrasts with steady ECB guidance and ongoing speculation about future ECB moves.

EUR/GBP Slides as UK Data Bolsters Sterling

The Euro (EUR) remained under pressure against the British Pound (GBP) on Monday, with Sterling outperforming after the release of the United Kingdom’s Q3 Gross Domestic Product (GDP) figures. EUR/GBP was last seen near 0.8741, recovering slightly after touching an intraday low close to 0.8728.

UK Growth Confirms Modest Expansion in Q3 2025

Data from the Office for National Statistics showed that the UK economy expanded by 0.1% quarter-on-quarter in Q3 2025, in line with the preliminary estimate and representing a slowdown from the 0.2% increase recorded in Q2.

From an output perspective, services and construction activity each rose by 0.2%, offsetting some of the weakness from the production sector, which contracted by 0.3%.

On a year-on-year basis, UK GDP was 1.3% higher than in the same quarter of the previous year.

BoE Maintains Cautious Easing Bias

The latest GDP report does not substantially alter the near-term policy outlook for the Bank of England (BoE) but reinforces its careful approach to easing. The BoE cut interest rates by 25 basis points last week, while emphasizing that although rates could decline over time, upcoming decisions are becoming a “closer call.”

ECB Officials Signal Steady but Flexible Stance

On the Euro side, trading conditions remained subdued as markets moved into the year-end holiday period and the economic calendar stayed relatively light. Nevertheless, remarks from European Central Bank (ECB) policymakers provided some backing for the single currency.

Governing Council member Gediminas Šimkus stated that inflation is expected to stay close to the 2% target over the medium term, while noting that growth has improved but remains sluggish. Peter Kažimír commented that the ECB is maintaining flexibility and is prepared to act if needed, and Boris Vujčić highlighted that risks to both inflation and growth are broadly balanced, adding that the next policy move could go in either direction.

The ECB left all three key interest rates unchanged at last week’s meeting and reiterated that policy decisions will be made on a meeting-by-meeting basis and guided by incoming data. Speculation about a potential ECB rate hike next year, particularly after the institution upgraded its projections for growth and core inflation, has continued to underpin the Euro and helped to limit losses in EUR/GBP.

GBP Performance Against Major Currencies

The British Pound outperformed several major peers, with notable strength against the US Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.32%	-0.48%	-0.25%	-0.25%	-0.55%	-0.56%	-0.29%
EUR	0.32%		-0.16%	0.07%	0.08%	-0.23%	-0.24%	0.03%
GBP	0.48%	0.16%		0.23%	0.23%	-0.07%	-0.08%	0.19%
JPY	0.25%	-0.07%	-0.23%		0.03%	-0.28%	-0.29%	-0.02%
CAD	0.25%	-0.08%	-0.23%	-0.03%		-0.30%	-0.32%	-0.04%
AUD	0.55%	0.23%	0.07%	0.28%	0.30%		-0.01%	0.30%
NZD	0.56%	0.24%	0.08%	0.29%	0.32%	0.01%		0.27%
CHF	0.29%	-0.03%	-0.19%	0.02%	0.04%	-0.30%	-0.27%

How to Read the Currency Heat Map

The heat map above displays the percentage changes of major currencies against one another. The base currency is taken from the left-hand column, while the quote currency is selected from the top row. For instance, selecting the British Pound in the left column and moving horizontally to the US Dollar cell shows the percentage change for GBP (base)/USD (quote).