Because of dovish views over the ECB's monetary stance, EUR/GBP is still muted around 0.8350

EUR/GBP remains steady around 0.8350 during early European trading hours on Monday. The Euro faces pressure as market sentiment weakens following the European Central Bank's (ECB) dovish stance, with expectations of a rate cut at its December meeting.

In its Autumn 2024 forecast, the European Commission has kept its Euro Area growth prediction for 2024 at 0.8%, the same as its Spring estimate. However, the projection for 2025 has been slightly reduced to 1.3%, down from the previous 1.4%, while growth for 2026 is expected to be 1.6%.

EU Economy Commissioner Paolo Gentiloni noted that with inflation easing, private consumption and investment growing, and unemployment at record lows, the Eurozone's growth is expected to pick up pace in the next two years.

In the UK, the economy grew by 0.1% quarter-on-quarter in Q3, slower than the 0.5% growth in Q2 and below the 0.2% market expectation. On a yearly basis, UK GDP grew by 1.0% in Q3, in line with forecasts and an improvement over the 0.7% growth in Q2. Monthly, GDP contracted by 0.1% in September, reversing the 0.2% gain seen in August.

Ruth Gregory, Deputy Chief UK Economist at Capital Economics, reaffirmed the expectation that the Bank of England (BoE) will keep rates at 4.75% in December, with a 25-basis-point rate cut likely in February.

Paraphrasing text from "FX Street" all rights reserved by the original author.