EUR/GBP Holds Firm as Weak UK GDP, Hawkish ECB Support Euro

The euro strengthened against the British pound on Friday, with EUR/GBP trading around 0.8633, up from an intraday low. A hawkish tone from European Central Bank officials provided support for the common currency, while disappointing UK Gross Domestic Product data reinforced concerns over a slowing economy.

UK GDP figures came in weaker than expected, weighing on the pound. The data added to the narrative of a struggling British economy, contrasting with the ECB's more aggressive stance on inflation. The cross remains elevated as traders weigh the diverging monetary policy outlooks between the Bank of England and the ECB.