ING Maintains Bullish Outlook on EUR/GBP Amid Weak UK GDP Data

ING analysts have reaffirmed their bullish stance on the EUR/GBP pair following disappointing UK economic growth figures. Strategist Francesco Pesole highlighted that the UK economy ended 2025 on a weak footing, with significant softness in the construction and business investment sectors. This stagnation in key areas of the economy is putting downward pressure on the Pound Sterling as growth concerns mount. While the Bank of England (BoE) monitors these developments, the confirmation of economic fragility supports a higher exchange rate for the Euro against the Pound. Market participants are now shifting their focus to upcoming employment and inflation reports as the next major catalysts for BoE policy decisions. The current macroeconomic backdrop suggests that the Euro may continue to outperform its British counterpart in the near term.