EUR/GBP remains silent near 0.8300 ahead of key data release from Eurozone, UK

• EUR/GBP steadies as traders adopt caution ahead of Eurozone PMI and UK Retail Sales data.
• The Pound Sterling faced challenges amid ongoing concerns about the UK's economic outlook.
• The EUR could lose ground as the ECB is expected to deliver quarter-point cuts at every meeting until mid-2025.

EUR/GBP maintains its position following gains in the previous session, trading around 0.8290 during the Asian hours on Friday. The currency cross gained ground as traders remained cautious due to ongoing concerns about the UK's economic outlook. Bank of England (BoE) Governor Andrew Bailey warned this week that economic growth is expected to remain sluggish, with a softening labor market.

The Pound Sterling (GBP) tried to gain traction after a hotter-than-expected UK Consumer Price Index (CPI) report for January was released on Wednesday. Governor Bailey had already indicated that a short-term inflation spike, driven by volatile energy prices, wouldn't be persistent.

The EUR/GBP cross may lose ground due to rising expectations of further interest rate reductions from the European Central Bank (ECB). Analysts expect the European Central Bank (ECB) to deliver quarter-point cuts at every meeting until mid-2025. That would bring the deposit rate to 2.0%.

However, ECB Executive Board member Isabel Schnabel stated on Wednesday that the central bank might announce a "halt" in its monetary expansion cycle, as inflation risks have "skewed to the upside" while borrowing costs have significantly eased. Schnabel cautioned that domestic inflation remains "high" and wage growth is "still elevated," particularly amid "new shocks to energy prices."

Meanwhile, traders are closely watching the preliminary HCOB Purchasing Managers' Index (PMI) data for the Eurozone and Germany, set for release on Friday. On the UK front, attention will be on the upcoming Retail Sales data.