EUR/GBP Moves Up Above 0.8550 Ahead of Key Economic Reports
The EUR/GBP currency pair has gone up and is now trading around 0.8570. This happened after the UK reported weaker retail sales in May. Because of this, the British pound got weaker, helping the euro rise.
Recently, the Bank of England decided to keep interest rates at 4.25%. But since the UK economy is showing some signs of slowing down, many people now believe the Bank might cut rates as early as August. This thought is putting pressure on the pound.
On the other side, the European Central Bank has paused interest rate cuts, even though inflation is under control. This pause is giving more support to the euro.
Traders are now waiting for new economic data — called the PMI (Purchasing Managers’ Index) — for both the UK and the Eurozone. These reports show how well businesses are doing. If the data is strong or weak, it can affect the movement of the euro and pound.
Impact:
If business data from the Eurozone is strong, the euro could rise more. But if UK data is better than expected, the pound might recover slightly.