German factory orders rose 3.1% in June, exceeding forecasts and supporting the euro against the pound near key resistance.
The euro edged lower against the British pound on Thursday but remained near the 0.8575 level, holding below the late-July high of 0.8586. Downside pressure has been limited despite the pullback from a three-day rally.
German factory orders surged 3.1% in June, far outpacing the 0.3% market forecast and reversing a downwardly revised 0.3% decline in May. The stronger-than-expected data provided support for the euro, though technical resistance at 0.8586 has capped gains.
FX strategists at Rabobank noted that a shift in Bank of England policy expectations and upcoming fiscal concerns could weigh on the pound, favoring a rebound in EUR/GBP. They recommend buying dips toward 0.8550, with a break above 0.8588 seen as a bullish signal.