£-€ recovers and hits 3-week high

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waterman
Written by Dan Waterman
July 30th 2025
Euro-Zone squeezes out marginal growth in Q2..

Today the EU confirmed last quarter showed a minimal growth of 0.1%.

The reading was pretty much in line with expectations and so no movement in the FX market was seen. The report shows France and Spain slightly outperforming with Italy and Germany struggling in the quarter.

The Pound is continuing its recovery versus the Euro, clearing 1.5% in the last 3-days.

As mentioned yesterday, this is repricing in the Euro after the confirmed US-EU trade agreement. I expect, more than hope, to see the trend continue, albeit at a much slower pace from here-on-out.

With US trade tensions fading ($ currently stronger for now because of it) and with August being the lowest liquidity month of the year for the market (summer holidays), we could/should see better conditions for Sterling.

GBP v EUR is currently down 0.9% in July, but that's a fair bit better than the 2.4% at the beginning of this week (€5,500 loss on a £200,000 exchange). The pair now sits at 1% below the last 2-years' average.