Geopolitical uncertainty and thin economic data keep the Euro range-bound against the Pound ahead of key PMI and retail sales figures.
The Euro trades marginally lower against the British Pound at 0.8570, consolidating gains after rebounding from last week’s low of 0.8542. Investor caution persists amid mixed reports from the Middle East and a lack of significant economic releases in the Eurozone and UK.
Final Manufacturing PMI data for both regions was revised downward on Monday, with UK factory activity seeing the sharpest correction. Markets await Wednesday’s Services PMI and Thursday’s Eurozone Retail Sales before committing to larger positions. Analysts note the Bank of England’s cautious stance may weigh on the Pound despite a hawkish 6-3 vote split.
Sentiment remains fragile as US-Iran tensions simmer, with contradictory reports on maritime security and diplomatic talks. The absence of fresh macroeconomic guidance leaves traders focused on geopolitical developments.