The Euro fell below 0.8642 against the Pound as weaker-than-expected Eurozone PMIs contrasted with stronger UK activity.
The Euro retreated to a 10-day low against the British Pound, slipping below 0.8642 after preliminary PMI data highlighted diverging economic trends. The pair struggled to sustain a recovery above 0.8660, reflecting investor caution ahead of the releases.
Eurozone PMIs signaled slower growth, while UK activity data exceeded expectations, reinforcing the Pound’s relative strength. The move extends a broader downtrend for EUR/GBP, which has faced pressure amid shifting monetary policy expectations in both regions.
Markets are now assessing the implications for central bank policy, with traders pricing in potential rate differentials between the Bank of England and the European Central Bank.