Home›Forex›Major Pairs›EUR/GBP slips as strong PMIs offset de-escalation hopes

EUR/GBP slips as strong PMIs offset de-escalation hopes

EUR/GBP traded in the mid-0.8500s, capped below 0.8570 despite composite PMIs rising on both sides of the cross.

Reported · Written up by our desk · Major Pairs

EUR/GBP edged lower on Friday, holding in the mid-0.8500s and staying just below the 0.8570 area even after a strong batch of August flash PMIs across both economies, according to FXStreet.

The data was broadly supportive for both currencies, with the Eurozone composite PMI rising to a nine-month high and German manufacturing reaching its highest level in more than four years, while German services slipped back below 50 that separates growth from contraction.

In the UK, the composite PMI also beat expectations, led by services, while manufacturing eased broadly in line, and weaker-than-expected UK retail sales had limited impact on Sterling.

FXStreet also pointed to Middle East risk as a key driver of currency moves this week, after Iranian President Masoud Pezeshkian said Iran wants to end its conflict with the US now, from a position of strength, a tone that suggests de-escalation.

On the charts, EUR/GBP was around 0.8563, capped near the 20-period SMA around 0.8566, with the 4-hour RSI(14) near 49 indicating neutral momentum and keeping the near-term bias slightly bearish as resistance sits at 0.8565 to 0.8576.

More like this

Sources