EUR/GBP dips below 0.8570 as Iranian de-escalation rhetoric offsets robust Eurozone and UK PMI data.
The Euro fell against the British Pound on Friday, with EUR/GBP trading below 0.8570 despite strong August flash PMI readings. Eurozone composite PMI hit a nine-month high, led by German manufacturing, though services slipped into contraction. UK data also beat expectations, with services driving growth while manufacturing eased slightly.
Both currencies saw muted reactions as the PMI strength was balanced. German factory activity reached a four-year high, but weak UK retail sales had little impact on Sterling. Meanwhile, Iranian President Masoud Pezeshkian signaled de-escalation with the U.S., reducing Middle East risk premiums that had supported European currencies earlier in the week.
Technical resistance near 0.8566 capped further gains, keeping the short-term bias tilted downward.