- The EUR/GBP moves slowly while the operators adopt caution before the publication of the PMI data of the Eurozone and the United Kingdom.
- It is expected that the general business activity in the Eurozone has grown at a faster rate in May than in April.
- The sterling pound receives support since the year -on -year CPI rose at a robust rate of 3.5% in April, compared to the reading of March of 2.6%.
The EUR/GBP records small losses after registering profits in the previous three consecutive days. The crossing of currencies quotes down around 0.8440 during Thursday’s Asian hours. The euro (EUR) falls in front of its peers before the HCOB Purchase Manager Index (PMI) for the Eurozone, scheduled to be published later in the day.
According to preliminary estimates, the general business activity of the Eurozone is expected to have grown in May at a faster rate than the one seen in April, which could provide some support to the euro and keep the EUR/GBP crossing stable.
However, the firm moderate bets around the policy position of the European Central Bank (ECB) can continue to exert down the euro. This feeling is strengthened since ECB officials believe that inflation is on its way to returning to the 2% target of the Central Bank. It is widely anticipated that the ECB will make a new interest rate cut in the June policy meeting.
The EUR/GBP crossing also loses ground as the sterling pound (GBP) expands its profits after the publication of the consumer price index (IPC) of the United Kingdom (UK) for April, which were published on Wednesday.
The United Kingdom National Statistics Office (UK) published the interannual consumer price index (CPI), which rose at a robust pace of 3.5%, compared to estimates of 3.3%and March reading of 2.6%. This is the highest level seen since November 2023. Meanwhile, the general monthly inflation strongly rose 1.2%, compared to 1.1%estimates and the previous reading of 0.3%.
The increase in inflationary pressures in the United Kingdom could lead to the Bank of England (BOE) to undermine more an expansive monetary policy position. Operators are likely to observe the data managers index (PMI) of Global S&P that will be published on Thursday.
Economic indicator
Integrated PMI of Global S&P
Monthly PMI reports integrated in products and services, published by Markit Economicsare based on surveys conducted to executives of a large number of private companies in the manufacturing sector and also 300 companies in the service sector. The information is launched on the third business day of each month. Each response is weighted depending on the size of the company and its contribution to the total production or production of services, valued by the sub-director of companies to which it belongs. The responses of the largest companies have a greater impact on the final indices than those of small businesses. The results are presented through a question, which shows the percentage of respondents who reported an improvement, deterioration or no change from the previous month. From these percentages, an index is derived: a level of 50.0 indicates no change from the previous month, above 50.0 the signal is of increase (or improvement) and below 50.0, from a decrease (or contraction).
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Next publication:
MARD MAY 22, 2025 08:00 (PREL)
Frequency:
Monthly
Dear:
50.7
Previous:
50.4
Fountain:
S&P global
Economic indicator
PMI compound global s & p
The index composed of purchasing managers (PMI), published monthly by S&P globalit is an advanced indicator that measures private business activity in the United Kingdom for both manufacturing and services sectors. The data is derived from surveys to senior executives. Each response is weighted according to the size of the company and its contribution to the total production of manufacturing or services counted by the sub-director to which that company belongs. The responses of the survey reflect the change, if there is, in the current month compared to the previous month and can anticipate changing trends in official data series such as the Gross Domestic Product (GDP), industrial production, employment and inflation. The index varies between 0 and 100, with levels of 50.0 that indicate that there is no change compared to the previous month. A reading above 50 indicates that the private economy of the United Kingdom is expanding in general, which is an upward sign for sterling pound (GBP). Meanwhile, a reading below 50 points out that the activity is decreasing in general, which is considered bassist for the GBP.
Read more.
Next publication:
MAY MAY 22, 2025 08:30 (PREL)
Frequency:
Monthly
Dear:
49.3
Previous:
48.5
Fountain:
S&P global
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.
