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Euro hesitates near lows against the British Pound with the ECB in focus

June 11, 2026

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EUR/GBP trades flat around 0.8625, a few pips above two-week lows at 0.8620.
The ECB is widely expected to hike interest rates by 25 basis points amid rapidly rising inflation.
In the UK, GDP and Manufacturing Production data, due on Friday, is likely to set the direction of GBP crosses.

The Euro (EUR) is going through a nervous consolidation against the British Pound (GBP) on Thursday, with price action hovering around 0.8625, a few pips above two-week lows at 0.8620. The pair remains on the defensive, awaiting the outcome of the European Central Bank’s (ECB) monetary policy decision, while escalating tensions in the Middle East keep risk appetite subdued.

The ECB is widely expected to hike rates by a quarter of a percentage point for the first time since September 2023, bringing its benchmark Rate on the Deposit Facility to 2.25%, to stem inflationary pressures from the energy shock.

With the rate hike already priced in, investors are likely to focus on ECB President Christine Lagarde’s press conference for further insight about the bank’s forward guidance. In that sense, failure to commit to further monetary tightening might be considered a too-dovish message, and increase bearish pressure on the Euro.

Meanwhile, news from the Middle East remains grim, keeping demand for both the Euro and the GBP limited. The US military has launched a new round of attacks on Iran, and Tehran responded by targeting US assets in the region. US President Donald Trump threatened earlier on Thursday with more attacks if Iran fails to sign a deal, altogether dampening hopes of an upcoming end to the three-month conflict.

In the UK, all eyes are on the monthly Gross Domestic Product (GDP) and Industrial and Manufacturing Production data, due on Friday. Economic growth is expected to have contracted at a 0.1% pace in April, following a 0.3% growth in March. Manufacturing Production is seen dropping 0.2%, while Industrial Production is expected to have bounced up by 0.1% following a 0.2% decline in March.