EUR/GBP Hits Two-Month High Amid Euro's Gain Against Weaker Pound

The EUR/GBP pair has been on a four-day winning streak, climbing nearly 0.5% this week as the Euro gains strength against a weaker British Pound.

This rise follows downward revisions to both the Eurozone and UK Services Purchasing Managers’ Index (PMI) figures, with the Eurozone's final HCOB Services PMI revised down to 51.6 from 51.7 previously estimated, and the UK's S&P Global Services PMI revised to 52.5 from preliminary estimates of 52.8.

The European Central Bank (ECB) is expected to raise interest rates by a quarter-point later this month, with Bundesbank President Joachim Nagel making hawkish comments that are supporting the Euro.

In contrast, the Bank of England (BoE) is widely expected to keep its interest rate unchanged at its September 17 meeting, adding to the divergence in monetary policy between the two central banks.