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Euro edges higher against British pound as traders await US PCE

EUR/GBP remains supported by upgraded German growth data and higher IFO business sentiment, while EUR/USD extends its rebound toward 0.8560.

Reported · Written up by our desk · Major Pairs

The euro edged higher against the British pound for a second straight day, trading around the middle of its monthly range, as FXStreet said markets were calm and positioned ahead of upcoming US PCE inflation data.

EUR/USD extended its recovery to 0.8560 after bouncing from 0.8546 on Tuesday, with the near term calendar in both the eurozone and the UK described as light.

Support for the single currency came from Tuesday’s stronger German macro updates. German GDP for the second quarter was revised higher, and the IFO Business Climate Index for August rose to its highest level in one year, with both current conditions and expectations improving beyond market forecasts, FXStreet added.

FXStreet noted ING’s view that the Bank of England does not need to hike again, but that any resulting pressure on sterling may not show up until later in the year.

Latest closeEUR/USD 1.157 ▲0.4%

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