- EUR/GBP drifts higher to near 0.8610 in Friday’s early European session.
- Investors brace for Friday’s meeting between Trump and Putin for fresh direction.
- UK economy slowed less than expected in Q2, rising 0.3% QoQ.
The EUR/GBP cross gains traction to around 0.8610 during the early European session on Friday. The Euro (EUR) strengthens against the Pound Sterling (GBP) amid hopes that Russia will end the war in Ukraine. Traders will closely watch the developments surrounding the meeting between US President Donald Trump and Russian leader Vladimir Putin later on Friday.
Trump and Putin are set to meet later in the day in Alaska to discuss the Ukraine issue. Trump said on Thursday that he believes Putin is ready to end his war in Ukraine, but peace would likely require at least a second meeting involving Ukraine’s President Volodymyr Zelenskyy. Peace hopes imply lower energy costs and reduced geopolitical uncertainty in the Eurozone, which generally provides some support to the shared currency.
On the other hand, the UK economy slowed less than expected in the second quarter this year despite the shock of US trade tariffs and a weaker jobs market. This, in turn, could boost the GBP and cap the upside for the cross. The Office for National Statistics (ONS) showed on Thursday that the UK Gross Domestic Product (GDP) grew 0.3% QoQ in Q2 versus a 0.7% growth in Q1. This figure came in better than the expectation of a 0.1% expansion in the reported period.
