EUR Falls Against GBP as PMIs and Iran De-Escalation Cancel Out

The Euro (EUR) fell against the British Pound (GBP) despite strong Purchasing Managers Index (PMI) surveys in both the Eurozone and the UK. German manufacturing led the beat, hitting a multi-year high, but services slipped back into contraction.

Iranian President Masoud Pezeshkian signaled de-escalation of tensions with the US, saying Iran wants to end its conflict from a position of strength. The Middle East risk backdrop has kept European currencies on a tight leash this week.

The EUR/GBP pair held just below 0.8570, and technical analysis suggests a capped market rather than a directional breakout. Immediate resistance is clustered around 0.8565, with the Relative Strength Index (RSI) at 49 indicating neutral momentum.