- The EUR/GBP remains stable above a minimum of several weeks touched the day before.
- The hard line posture of the BOE continues to underpin the GBP and limit cash prices.
- The optimistic PMIS of the United Kingdom and Monday’s Eurozone contribute to a price action contained.
The EUR/GBP crossing oscillates in a narrow negotiation range during the Asian session on Tuesday and remains well within the reach of a minimum of almost three weeks, around the area of 0.8345 played the previous day.
The sterling pound (GBP) continues with its relative higher performance thanks to the hard line posture of the Bank of England (BOE), which, in turn, is considered a key factor that acts as a wind against for the EUR/GBP crossing. In fact, the Central Bank of the United Kingdom warned against assumptions about interest rate cuts and also increased its prognosis for a peak in inflation this year. This suggests that the BOE will reduce indebtedness costs more slowly than other main central banks.
In addition to this, the PMIS of the United Kingdom, mostly above the consensus, published on Monday, turn out to be another factor that supports the GBP. The Global S&P services PMI rose to 53.2, marking a notable increase with respect to the final impression of the previous month of 51. In addition, the compound PMI was 52 compared to February 50.5 and marked the greatest increase in six months. This helped compensate for the disastrous manufacturing PMI, which collapsed to 44.6 in March from the previous 46.9.
Meanwhile, the preliminary PMI showed on Monday that the business activity of the Eurozone accelerated at its fastest rate in seven months in March. The data moderates the hopes of a more aggressive policy relief by the European Central Bank (ECB), which, together with the contained price action of the US dollar (USD), provides some support to the common currency. This justifies a certain caution before opening new bearish positions around the EUR/GBP crossing and positioning for new losses.
Economic indicator
IFO Business Climate
This index published by the IFO Institute It is observed with attention as an early indicator of current conditions and expectations on eurozone businesses. The Institute conducts surveys to more than 7,000 companies, about its business environment evaluation and its short -term plans. A reading higher than the market consensus will increase the demand for the euro.
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Next publication:
Mar Mar 25, 2025 09:00
Frequency:
Monthly
Dear:
86.8
Previous:
85.2
Fountain:
IFO Institute
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
