EUR/GBP Exchange Rate Holds Steady Amid Strong PMI Data from Eurozone and UK

The EUR/GBP exchange rate has been holding steady as strong Purchasing Managers’ Index (PMI) data from both the Eurozone and the UK provide support for both currencies.

The euro's resilience is attributed to better-than-expected Eurozone PMI figures, which indicate that the bloc's private sector continues to expand despite headwinds. Germany and France, the region's largest economies, reported stronger activity in services, leading to reduced fears of an imminent recession and providing a floor under the euro.

Meanwhile, the UK's PMI data also exceeded forecasts, with the services sector remaining robust. This suggests that the UK economy is weathering higher interest rates and inflation better than previously thought, reinforcing expectations that the Bank of England may keep policy tighter for longer, lending support to the pound.