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EUR/GBP remains steady around 0.8650 as investors look ahead to UK GDP figures

EUR/GBP remains steady around 0.8650 as investors look ahead to UK GDP figures

101 finance101 finance2026/01/13 05:51
By:101 finance

EUR/GBP Holds Steady as Markets Await Central Bank Signals

The EUR/GBP currency pair is experiencing limited movement near 0.8650 during Tuesday's European session. Investors are closely watching for new developments regarding the monetary policy outlooks from both the Bank of England (BoE) and the European Central Bank (ECB).

Market expectations suggest that the BoE will continue its cautious approach to easing policy, as employment concerns in the United Kingdom persist and inflation remains well above the central bank’s 2% objective.

According to a monthly report released Monday by the Recruitment and Employment Confederation (REC) and KPMG, demand for labor stayed subdued in December, even as wage growth picked up pace.

Looking ahead to 2025, the job market is projected to stay under pressure, with companies slowing down recruitment to manage higher employer contributions to social security programs.

On the data front, traders are anticipating the release of the UK’s monthly Gross Domestic Product (GDP) figures for November on Thursday. The economy is forecast to show no growth, following a 0.1% decline in October. The same day will also bring updates on Industrial and Manufacturing Production for November.

For the Euro (EUR), broader market sentiment appears to be the main influence, as the ECB is expected to keep its monetary policy unchanged in the near future, with inflation hovering close to its 2% target.

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