empty
26.02.2025 12:03 PM
EUR/GBP: Germany's GfK Consumer Confidence Survey Weakens the Euro Against the Pound

This image is no longer relevant

The EUR/GBP pair is experiencing losses after two days of growth, currently trading around 0.8300.

This image is no longer relevant

The decline followed the release of Germany's GfK Consumer Confidence survey, which dropped to -24.7 for March 2025, falling below the revised -22.6 from the previous period and missing market expectations of -21.4. This marks the lowest level since April 2024, underscoring the current challenges for Germany's new government, including political uncertainty, rising corporate bankruptcies, and increasing costs.

Traders should closely monitor comments from European Central Bank (ECB) officials ahead of next week's meeting, where the fifth consecutive rate cut is expected.

According to a Reuters report, ECB Executive Board Member Isabel Schnabel stated that moderate economic growth should not automatically be seen as a sign of restrictive policy. She also highlighted a notable increase in the "natural" interest rate in the Eurozone over the past two years, suggesting that the inflationary process may undergo a long-term shift.

Other ECB policymakers, including Martins Kazaks and Joachim Nagel, have also voiced support for further rate cuts if inflation continues its decline towards the 2% target.

Meanwhile, Bloomberg reported that in the UK, Prime Minister Keir Starmer announced plans for a significant increase in defense spending, raising it to 3% of the country's GDP over the next decade. This move comes amid growing security concerns, particularly regarding potential shifts in U.S. support under Donald Trump's leadership.

Starmer described the initiative as "the largest sustained increase in defense spending since the end of the Cold War". Ahead of his upcoming visit to Washington this week, the UK Prime Minister confirmed that initial funding would come from cuts to foreign aid spending, without raising taxes or increasing borrowing.

Technical Outlook

From a technical standpoint, oscillators on the daily chart remain firmly in negative territory, indicating that the path of least resistance for the EUR/GBP pair remains downward.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

ECB Ready to Cut Rates Further

Officials at the European Central Bank are preparing for further interest rate cuts, anticipating that U.S. tariff policies will inflict serious and prolonged damage on the economy, even

Jakub Novak 09:24 2025-04-28 UTC+2

The Upcoming Week May Be Positive for Markets but Negative for the Dollar and Gold (we expect further growth in CFD contracts for S&P 500 futures and Bitcoin)

The upcoming week will be rich in important economic data releases, which could have a noticeable impact on market dynamics — but will they be able to? Amid the geopolitical

Pati Gani 09:12 2025-04-28 UTC+2

EUR/USD. Weekly Preview. Eurozone Inflation, U.S. GDP, ISM Manufacturing Index, April Nonfarm Payrolls

The upcoming week's economic calendar is packed with important releases. As usual, the beginning of a new month brings significant macroeconomic reports from the U.S. and the Eurozone, typically triggering

Irina Manzenko 06:49 2025-04-28 UTC+2

What to Pay Attention to on April 28? A Breakdown of Fundamental Events for Beginners

No macroeconomic events are scheduled for Monday. If the market barely reacted to macroeconomic data last week, there is nothing to expect on Monday. Of course, Donald Trump could make

Paolo Greco 05:51 2025-04-28 UTC+2

The U.S. Dollar. Weekly Preview

The United States is facing an important week, but it is unlikely to be important for the U.S. dollar. Significant reports on the labor market, job openings, unemployment

Chin Zhao 01:05 2025-04-28 UTC+2

British Pound. Weekly Preview

The British pound is doing even better than the euro. The market keeps finding additional reasons to increase demand for the pound, even when the euro remains stagnant. Therefore, even

Chin Zhao 01:05 2025-04-28 UTC+2

XAU/USD. Analysis and Forecast

Gold maintains a bearish tone today, though it has slightly recovered from the daily low, climbing back above the $3300 level. Investors continue to hope for a potential de-escalation

Irina Yanina 12:23 2025-04-25 UTC+2

The Market Has Nowhere Left to Run

While Donald Trump and Beijing are still trying to figure out whether trade negotiations between the U.S. and China are happening at all, the S&P 500 continues to climb

Marek Petkovich 11:57 2025-04-25 UTC+2

The U.S. Dollar Rises — Here's Why

The U.S. dollar strengthened against a number of global currencies, as did the U.S. stock market, following reports that the Chinese government is considering suspending its 125% tariffs on certain

Jakub Novak 11:31 2025-04-25 UTC+2

Why Could Gold Prices Drop Significantly? (There's a chance gold will continue to decline while the CFD on the NASDAQ 100 futures contract may rise)

The beginning of actual negotiations could lead to a significant drop in gold prices in the near future. In previous articles, I suggested that the previously surging price of gold

Pati Gani 10:14 2025-04-25 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.