The Euro holds recent gains against the Pound as traders await final July services PMIs and Eurozone PPI data.
The Euro traded at 0.8573 against the British Pound on Wednesday, maintaining gains from the past two days. A positive risk sentiment and lower oil prices have supported the single currency ahead of key economic releases later in the day.
Preliminary July services PMIs showed improvement in both regions, with the Eurozone at 51.6 and the UK at 51.8, up from June’s 49.4 and 48.8, respectively. Eurostat will also release June’s Eurozone Producer Price Index, expected to contract 0.3% month-on-month and ease to 4.6% year-on-year.
Analysts noted the Bank of England’s dovish tone following last week’s meeting, with Governor Andrew Bailey’s comments weighing on the Pound despite a hawkish voting split.