Ella 
In early European trading on Thursday, the euro weakened against the pound to around 0.8565. UK GDP growth data was in line with consensus, boosting GBP/EUR exchange rates. Attention will turn to Friday’s UK retail sales report, which is expected to rise 0.5% monthly in July.
Data released by the Office for National Statistics (ONS) on Thursday showed that the British economy grew in line with expectations in the second quarter of this year. UK GDP grew 0.6% in the second quarter from 0.7% in the previous quarter. The consensus is 0.6%. In addition, the UK’s gross domestic product (GDP) increased by 0.9% in the second quarter compared with the same period last year, compared with a growth of 0.3% in the first quarter, in line with the expected growth of 0.9%. Pound Sterling (GBP) has attracted some buyers due to positive data and is bearish for EUR/GBP.
In the euro, the European Central Bank (ECB) is expected to cut deposit rates again before the end of next year. A Bloomberg survey suggests the benchmark rate will hit 2.25% in December 2025, after six consecutive cuts.
The second estimate of quarterly euro zone gross domestic product (GDP) growth in the second quarter was 0.3%. Eurostat reported on Wednesday that the figure was unchanged from the previous quarter and in line with forecasts. Eurozone industrial production fell to -0.1% in June from -0.9 in the previous month, below expectations of 0.5%.
