EUR/GBP rises near 0.8562 as UK manufacturing PMI downgrades and Bank of England policy doubts pressure the pound.
The Euro edges higher against the British Pound, trading at 0.8562 after UK and Eurozone manufacturing PMI figures were revised lower. The UK’s July PMI showed a sharper slowdown in sector activity compared to June, while Eurozone data improved marginally.
Analysts note the Bank of England’s cautious stance on rate hikes, with last week’s decision signaling comfort in holding rates amid limited inflationary pressures. TD Securities suggests fading the recent GBP rally, citing potential further reductions in September rate hike expectations.
Technical indicators remain mixed, with EUR/GBP struggling to breach the 0.8570 resistance level. A failure to hold above this threshold could push the pair toward 0.8545 support.