The EURGBP exchange rate has economic data ahead as investors watch France and Britain.
EURGBP – Daily Chart
The EURGBP is consolidating within the triangle formation and has breakout potential at the 0.8740 level. Support for the downside comes in around 0.8600.
Traders are waiting for further developments in France and Britain. A Monday vote of confidence on the French Prime Minister is expected to lead to another departure and further political turmoil in Europe’s second largest economy.
In the UK, the government is also under heavy pressure with approval ratings of around 15% and economic stress. Investors are fearing the upcoming budget in the next months with the potential for further taxes as debt yields rise to highs not seen since the 1970s-80s.
With the annual budget unlikely to be held before November, the UK is facing weeks of speculation on potential actions, which could potentially dampen investments and consumer confidence.
UK Chancellor Rachel Reeves has been warned by top industry bosses that the UK economy remains “stuck in first gear” with the British Chambers of Commerce (BCC) saying growth would be slightly higher than expected this year. The BCC has revised its GDP estimate for 2025 up to 1.3 per cent from 1.1 per cent.
“The economy will continue to be buffeted by global headwinds, alongside ongoing worries about high bond yields,” Pryce said.
“Government expenditure has bolstered the economy this year, but the spending taps are likely to be tightened very soon”.
David Bharier, head of research at the BCC, added that the forecasts showed economic growth was “stuck in first gear”.
The situation is similar in France where investors worry that France’s persistent deficits will continue to increase debt ratios and undermine its credit score.
The EURGBP exchange is consolidating but could see volatility soon once further clarification is found on the path of Britain and France’s finances.
