August PMIs show stronger-than-expected activity in both regions, supporting EUR and GBP equally and leaving the pair little changed.
EUR/GBP traded around 0.8570 Friday, unchanged on the day, as solid PMI data from the Eurozone and UK provided balanced support. The Eurozone Composite PMI rose to 52.1 in August, exceeding forecasts of 51.7, while UK Composite PMI climbed to 52.5, beating expectations of 51.6.
In the Eurozone, manufacturing activity improved to 52.8 from 51.9, defying expectations of a slowdown. Services held steady at 51.7, slightly above forecasts. Germany’s manufacturing PMI surged to a 51-month high of 54.1, though services contracted to 48.5. UK services PMI accelerated to 52.8, while manufacturing slowed to 51.5.
The data left EUR/GBP directionless, as both currencies found support from stronger-than-anticipated economic activity.