Strong UK GDP Data Leave Euro Broadly Steady Against British Pound

• 0.8350: EUR/GBP holds steady near this level following UK Q3 and September GDP releases.
• 0.7% growth in UK Q3 GDP marks a stronger economic performance.
• UK labour market and inflation figures now take centre stage for investors.

0.8350 remains the Euro’s (EUR) approximate level against the British Pound (GDP). During Thursday’s European session, the Pound is broadly unchanged following the United Kingdom’s (UK) Q3 and September Gross Domestic Product (GDP) releases, leaving the Euro steady against it.

Economic growth strengthened to 0.7%, matching expectations, from 0.5% in this year’s second quarter, according to the Office for National Statistics (ONS). Annualised growth also met forecasts at 1.9%, up from the previous reading of 1.4%.

September GDP expanded by 0.2% month on month (MoM), defying expectations of another flat reading. August’s GDP figure was revised down from 0.1%.

With the Bank of England (BoE) having begun a fresh monetary tightening cycle to contain accelerating price pressures, evidence of robust UK economic growth is expected to offer its policymakers some relief.

Next week’s releases will put the focus on UK labour market figures for the three months ending September and October’s Consumer Price Index (CPI). These will be the next major catalysts for the British Pound. Both indicators are expected to materially influence expectations for the BoE’s monetary policy outlook.