Anna 
The EUR/GBP cross maintains a positive stance below the mid-0.8500s in early European trading on Wednesday, buoyed by mixed UK economic indicators. As of the latest update, EUR/GBP is trading at 0.8544, marking a 0.04% increase for the day.
The Office for National Statistics’ data release on Tuesday revealed a 0.2% month-on-month growth in the UK Gross Domestic Product (GDP) for January. This figure matched the estimated 0.2% expansion and represented an improvement from the previous reading, which had seen a 0.1% contraction. However, UK Industrial Production for January fell short of expectations, declining by 0.2% month-on-month compared to a 0.6% rise in December. The UK Goods Trade Balance for January came in at GBP-14.515 billion, surpassing the GBP-15 billion anticipated but wider than the prior GBP-13.989 billion.
On the policy front, the European Central Bank (ECB) left its monetary policy unchanged last week. ECB President Christine Lagarde mentioned that discussions about rate cuts had begun, but the central bank would wait until more evidence is available by June. ECB Governing Council member Peter Kazimir expressed increasing confidence that inflation is decreasing but suggested holding off on an interest rate cut until June. Meanwhile, ECB policymaker Pierre Wunsch indicated that the central bank might need to consider rate cuts soon, despite uncomfortably high wage inflation and service price rises.
Upcoming economic events include Spain’s Consumer Price Index (CPI) on Thursday, along with speeches from ECB officials Elderson, Schnabel, and De Guindos. Friday will see the release of CPI inflation data from France and Italy. Looking ahead to next week, the focus will be on the UK’s February CPI report and the Bank of England’s interest rate decision.
