EUR/GBP loses ground near 0.8660 following UK GDP data

• EUR/GBP attracts some sellers around 0.8660 after the UK growth numbers data. 
• UK Q3 final GDP came in worse than expected, shrinking 0.1% QoQ versus 0% prior.
• ECB’s Guindos said it’s premature to start easing monetary policy; November’s German PPI came in worse than expected.

The EUR/GBP cross snaps the two-day winning streak during the early European session on Friday. The cross retraces from the multi-week highs of 0.8685 and currently trades near 0.8660, losing 0.13% on the day.

The latest data from the UK Office for National Statistics revealed on Friday that the nation’s Gross Domestic Product (GDP) for the third quarter (Q3) came in at -0.1% QoQ versus 0% prior. On an annual basis, the GDP growth number arrived at 0.3% from the previous reading of 0.6%. Both figures were weaker than market expectations.

Furthermore, November’s UK Retail Sales rose 1.3% MoM from 0% in October, while Retail Sales ex-Fuel climbed 1.3% MoM versus 0.2% previously.

The European Central Bank (ECB) Vice President Luis de Guindos stated on Thursday that it’s premature to start easing monetary policy. He added that the ECB does not foresee a technical recession in the Eurozone and that the central bank would welcome a deal on EU fiscal reform as it would alleviate market uncertainty.

About the data, the German Producer Price Index (PPI) for November dropped 7.9% YoY from 11% fall in the previous reading, worse than the market expectation of a 7.5% decline. Additionally, the German Gfk Consumer Confidence Survey for January came in at -25.1 versus -27.6, above the consensus of -27.0.  

Later on Friday, the Consumer Confidence from France, Spain, and Italy will be due. However, these figures might have a minimal impact on the markets ahead of the holiday season.