0.8336: Euro slides to 19-month lows versus British Pound despite encouraging Eurozone GDP

EUR/GBP reaches new 19-month lows under 0.8340, heading for a 3.15% decline over a five-week downtrend.
Despite stronger-than-expected Q3 Eurozone GDP, rising unemployment and elevated oil prices limit the scope for Euro gains.
Expectations of a BoE rate hike next week continue to support demand for the Pound.

EUR/GBP has touched 0.8336, a fresh 19-month low. The pair is heading for a 3.15% decline over a five-week downtrend. On Friday, the Euro (EUR) continues to weaken as Eurozone economic releases fail to reassure investors. By contrast, the British Pound (GBP) is advancing broadly as markets price in a Bank of England (BoE) rate hike next week.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

At 0.4%, third-quarter growth in the Eurozone’s Gross Domestic Product (GDP) was double the expected 0.2%, preliminary Eurostat figures showed. However, it slowed from 0.6% in the previous quarter. Earlier releases showed German GDP exceeding forecasts, while France’s economy shrank despite a market consensus for modest growth.

An unexpected rise in the Unemployment Rate has countered investor optimism over positive Eurozone growth. September’s rate edged up to 6.5%, against market expectations of 6.4%.

Adding to the pressure, oil continues to trade near five-month highs. Brent Crude is holding above $112.00 a barrel, creating a substantial drag on the region’s economic growth and increasing inflation risks.

Attention in the UK is now on next week’s Bank of England meeting. With recent economic figures showing continued growth and inflation still well above the bank’s target, futures markets have almost fully priced in a 25-basis-points rate hike next week.

Technical Analysis: EUR/GBP RSI near 32 as oversold territory approaches

At the time of writing, EUR/GBP stands at 0.8343. Its continued decline within a downward parallel channel leaves the near-term outlook bearish. On the 4-hour chart, momentum indicators support further weakness. However, the Relative Strength Index (14) is close to 32 and approaching oversold territory, suggesting sellers may need to pause.

A confirmed break below 0.8345, Thursday’s low, would bring the late March 2025 lows at 0.8315 to 0.8330 into view. Beyond that lies the channel’s lower boundary, currently around 0.8300.

Any recovery is likely to encounter resistance at the channel’s upper boundary of 0.8360. Further hurdles are Wednesday’s high near 0.8385 and the weekly high just above 0.8400.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Pound Sterling: Today’s Currency Performance

Against the US Dollar, the British Pound (GBP) recorded its strongest performance today. The table below sets out its percentage changes against the major currencies listed.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.20%	-0.40%	-0.46%	-0.27%	-0.13%	-0.29%	-0.39%
EUR	0.20%		-0.20%	-0.18%	-0.03%	0.08%	-0.10%	-0.20%
GBP	0.40%	0.20%		0.02%	0.13%	0.28%	0.10%	-0.00%
JPY	0.46%	0.18%	-0.02%		0.13%	0.26%	0.09%	-0.01%
CAD	0.27%	0.03%	-0.13%	-0.13%		0.13%	-0.03%	-0.13%
AUD	0.13%	-0.08%	-0.28%	-0.26%	-0.13%		-0.17%	-0.26%
NZD	0.29%	0.10%	-0.10%	-0.09%	0.03%	0.17%		-0.09%
CHF	0.39%	0.20%	0.00%	0.01%	0.13%	0.26%	0.09%

To read the heat map of percentage changes between major currencies, select the base currency in the left-hand column and the quote currency in the top row. For instance, choosing the British Pound on the left and following its row across to the US Dollar gives the percentage change for GBP (base)/USD (quote) in the corresponding cell.