The EUR/GBP is maintained above 0.8400 behind the data of the German GDP and the retail sales of the United Kingdom

• The EUR/GBP maintains profits while the German GDP rose 0.4% in the first quarter, compared to the expected increase of 0.2%.
• The euro could have difficulty while President Trump presses the European Union to reduce tariffs or in front of additional risks.
• The sterling pound is appreciated since retail sales of the United Kingdom increased an intermencing 1.2% in April, exceeding the expected increase of 0.2%.

The EUR/GBP recovers its recent losses registered in the previous session, quoting around 0.8410 during Friday’s Asian hours. The crossing of currencies advances since the euro (EUR) attracts purchase support behind the data of the Gross Domestic Product (GDP) of Germany for the first quarter, published by Destatis.

The intertrimestral German GDP rose 0.4% in the first quarter, compared to market expectations of a constant increase of 0.2%. Meanwhile, the annual GDP rate remained unchanged at 0%, better than the expected fall of 0.2%.

However, the EUR/GBP crossing could face challenges since the euro could lose ground due to the increase in risk aversion. Financial Times reported that President Trump presses the European Union (EU) to reduce tariffs or in front of additional tariffs. The US Trade Representative, Jamieson Greer, is prepared to tell his EU counterpart, Maroš šefčovič, Commissioner of Commerce and Economic Security, that the recent “explanatory note” does not meet the expectations of the USA.

On Thursday, the policy head of the European Central Bank (ECB), Boris Vujčić, said that “Eurozone growth is positive but low.” Vujčić hopes that inflation can approach the objective of 2% at the end of the year and achieve the objective in early 2026. Meanwhile, Joachim Nagel, president of Bundesbank and a member of the Governing Council of the European Central Bank (ECB), argued that the current level of interest rates of the bank is not considered restrictive.

The EUR/GBP crossing potential could be limited since the sterling pound (GBP) gains ground since retail sales of the United Kingdom (UK) increased an intermencing 1.2% in April, exceeding the expected increase of 0.2%. This advance follows a 0.1% increase in March (reviewed from 0.4%). In interannual retail sales improved 5.0% in April compared to 1.9% in March. Meanwhile, basic retail sales (excluding fuel data) grew by 5.3% in April compared to the previous 2.6% review, while monthly sales increased an intermensual 1.3%, compared to the previous review of 0.2% and the estimated reading of 0.3%.

The sterling pound (GBP) also attracted buyers after the publication of the GFK consumer confidence index, which was better than expected for the United Kingdom (UK). The United Kingdom consumer trusted index increased 3 points to -20 in May, better than the expected reading of -22 and reversing the reading of -April. However, the feeling of the consumer remains cautious since the index remains well below its long -term average.