Forex
Home›Forex›Major Pairs›Euro steadies near three-month highs versus pound afte…
Euro steadies near three-month highs versus pound after German data
EUR/GBP was at 0.8607, after the pair gained 0.3% this week, as strong German IFO indicators offset hawkish Bank of England comments.
The euro held onto gains versus the British pound on Thursday, with EUR/GBP trading around 0.8607, just below three-month highs near the 0.8600 area. FXStreet said the pair was up 0.3% so far this week.
Support for the common currency came from strong Eurozone data, including a jump in Germany’s IFO Business Climate Index to 89.9 in September from 88.8 in August. The report also showed the sentiment about current conditions rising to 89.5 from 88.5, while economic expectations climbed to 90.4, the highest level since February.
While the IFO Institute pointed to improvements in manufacturing, it also noted that businesses said their current situation had worsened due to a weaker order backlog, and it warned the automotive sector was navigating “a difficult terrain.” FXStreet said the services index rose, while the construction index was largely unchanged.
In the UK, FXStreet reported that Bank of England Deputy Governor Clare Lombardelli sounded hawkish, saying the bank would likely need to raise interest rates if elevated energy prices persist, and that wage growth is still too high to match the inflation target. However, the report said the impact on the pound appeared muted.