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EUR/GBP drifts lower near 0.8560 ahead of flash PMIs
EUR/GBP was down 0.15% in Thursday's American session and holds above nearby short-term moving averages around 0.8560 to 0.8561.
EUR/GBP eased from intraday highs, trading near the 0.8560s after failing to sustain gains from the 0.8585 area, according to FXStreet. The pair was down 0.15% in Thursday's American session as traders positioned ahead of a data-heavy Friday.
The immediate driver is set to be Friday's flash Purchasing Managers' Index releases, with Eurozone surveys expected to remain in expansion. FXStreet said the composite forecast is around 51.7, which could support the euro versus sterling near term.
For the UK side, FXStreet flagged softer expectations, including a view that retail sales will slip in July and the S&P Global UK Composite PMI will ease from the prior month. That backdrop could keep the pound under pressure and support the idea of EUR/GBP holding its recent range floor.
FXStreet also pointed to technical levels, saying EUR/GBP was at 0.8567 on the 4-hour chart and remained above the 20-period and 100-period SMAs near 0.8561 and 0.8560. Support was cited around 0.8563, with resistance clustered at 0.8572, 0.8575, and 0.8577.