Forex
Home›Forex›Major Pairs›Euro strengthens versus weak British pound after mixed…
Euro strengthens versus weak British pound after mixed UK PMI data
EUR/GBP climbed to a session high near 0.8590 as UK services cooled and the UK composite PMI fell to 51.7 in September.
The euro rallied against the British pound, with EUR/GBP hitting session highs around 0.8590 as the UK posted mixed Purchasing Managers' Index data that pointed to weaker momentum in parts of the economy. FXStreet said the UK manufacturing PMI rose to 52.0 in September from 51.7 in August, while services slowed to 51.7 from 52.5, pulling the composite index down to 51.7 from 52.5.
FXStreet also cited signs of renewed price pressure in the UK surveys, noting that input price inflation accelerated for a second month in a row to its highest level since June, with survey respondents citing higher energy, fuel and raw material costs.
On the eurozone side, FXStreet said preliminary eurozone PMI data were more supportive, with services PMI improving to 53.0, its highest level in 10 months, and manufacturing PMI steady at 52.7. In Germany, services activity rose to 52.9 after five months of contraction, while manufacturing slowed to 53.8 from 54.3.
The euro also faces additional uncertainty, FXStreet said, including political pressure in Germany after disappointing results for the ruling CDU party in state elections, and concerns about France’s public debt reaching its highest level since 1978 as borrowing costs rise.