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EUR/GBP quotes are around 0.8470 prior to UK GDP data
Despite the weaker consensus for UK GDP statistics, EUR/GBP is sensing selling pressure near 0.8470. As a result of stagnant incomes and surging inflation, households in the United Kingdom are increasing their outlays. The performance of secondary Eurozone data is anticipated to be susceptible.
Since Thursday, the EUR/GBP pair has continually encountered resistance near the immediate barrier of 0.8465. As investors await UK Gross Domestic Product (GDP) statistics, the asset is anticipated to exhibit erratic behavior. After reaching a three-month low of 0.8340 on August 1st, the cross has surged dramatically upward throughout the month.
According to preliminary estimates, the UK economy contracted 0.2% in the second quarter of CY2022, compared to the 0.8% gain reported in the first quarter. In addition, the yearly data is anticipated to decrease to 2.8% from 8.7% in the previous report. A negative reading for the growth rate implies that the demand for goods and services as a whole has decreased significantly, resulting in a slowdown in economic activity.
Rising pricing pressures and a restrained Labor Cost Index are responsible for lowering GDP forecasts for the United Kingdom. Due to intensifying cost pressures, the households are confronted with the headwinds of rising payouts. In addition, low Average Hourly Wages have compelled them to reduce their overall demand.
In addition, the Manufacturing Production data is anticipated to exhibit a weak performance. Annually, the economic statistics is anticipated to decrease to 0.9% from the previous release of 2.3%. In addition, the monthly data is anticipated to show a decline of 1.8% compared to the prior reading of 1.4%.
On the Eurozone front, Eurostat will issue the Industrial production numbers, which are anticipated to be 0.2% and 0.8% lower than their previous monthly and annual releases.
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