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Euro holds steady vs British pound near 0.8550 after stronger data
EUR/GBP stayed around 0.8550 as ECB and UK-linked growth signals helped offset caution from Middle East tensions and energy and tariff concerns.
EUR/GBP traded around 0.8550 on Friday, remaining broadly stable despite a string of stronger-than-expected economic releases from both the eurozone and the UK, according to FXStreet.
Preliminary S&P Global surveys pointed to a broad-based revival. In Germany, the Manufacturing PMI rose to 52.2 in July from 50.3 in June, and the Germany Composite PMI returned to expansion at 51.2, with services still slightly below 50, while across the eurozone, Manufacturing PMI climbed to 52.0 and Services activity returned to expansion at 51.6, lifting the Composite PMI to 51.9.
UK data also supported the pound, with UK retail sales up 1.0% month over month in June and the preliminary S&P Global Services PMI returning to expansion at 51.8, alongside Manufacturing PMI increasing to 52.8, pushing the UK Composite PMI to 52.1.
On policy, ECB Governing Council member Martin Kocher said he sees no hard evidence of second-round inflation effects but stressed the ECB remains vigilant and stands ready to act if the inflation outlook deteriorates, while FXStreet noted that investors also stayed cautious due to escalating Middle East tensions, higher energy prices, and recent US tariff announcements.