EUR/GBP Falls Below 0.8550 Before BoE Governor’s Speech
On Thursday morning, the EUR/GBP currency pair dropped to around 0.8525. This happened as the British Pound got stronger due to better-than-expected UK economic data for June. The UK’s Composite PMI, which measures business activity, rose to 50.7 from 50.3. This was slightly better than the expected 50.5 and showed that the services sector—one of the most important parts of the UK economy—is growing at its fastest pace in three months. It even did better than similar data from Germany and France.
Now, all eyes are on Bank of England (BoE) Governor Andrew Bailey, who is set to give a speech later today. Recently, he mentioned that the UK labor market is showing signs of cooling down. This could mean that the BoE is getting closer to cutting interest rates. If Bailey’s comments support this idea, the Pound could weaken, which might help EUR/GBP rise again.
At the same time, the Euro is facing some pressure. Concerns remain over slower growth in Europe and the possible impact of U.S. tariffs. A few European Central Bank (ECB) officials are also expected to speak today, and their comments might affect the euro’s movement.
Impact:
EUR/GBP might rise if the BoE sounds more likely to cut rates or if the ECB gives positive signals. Future data and speeches could shift the pair’s direction.