Euro and pound remain stable as geopolitical risks offset better-than-expected PMI and retail sales figures from both economies.
EUR/GBP trades around 0.8550 on Friday, showing little movement despite stronger economic data from the Eurozone and the UK. Investors remain cautious amid rising geopolitical tensions in the Middle East, limiting currency volatility.
Germany’s Manufacturing PMI rose to 52.2 in July from 50.3 in June, exceeding the 50.1 forecast, while the Composite PMI returned to expansion at 51.2. Eurozone Manufacturing PMI climbed to 52 from 51.4, with the Composite PMI reaching 51.9. UK Retail Sales grew 1% month-over-month in June, defying expectations of a 0.3% decline.
The data suggests a rebound in economic activity, though geopolitical uncertainties continue to weigh on market sentiment.