EUR/GBP Moves Up a Bit – But Euro May Not Go Much Higher
The euro went up slightly against the British pound on Tuesday. It reached around 0.8550 to 0.8570 in the early trading hours. This small rise happened because the UK’s retail sales were weak, which made the pound fall a little.
But the euro may not go much higher. The European Central Bank (ECB) is being careful and is not planning to cut interest rates anytime soon, even though inflation is low. This careful approach is helping the euro stay strong, but it may also stop it from rising too much.
Traders are now waiting for new economic data from both the UK and the Eurozone. This includes the PMI numbers, which show how well businesses are doing. These reports could affect what happens next with EUR/GBP.
In the UK, the Bank of England has kept interest rates at 4.25%. But because retail sales are weak, many people believe the bank could cut rates later this year—maybe in August. This puts more pressure on the pound and helps the euro stay a little stronger.
Impact:
EUR/GBP might go up to 0.8600 if business data is strong. But because the ECB is being cautious, the rise could stay limited.