Euro Edges Up Against Pound Amid Calm Markets
The Euro has edged up against the British Pound for the second consecutive day on Wednesday, trading halfway within its monthly range. This move comes as markets remain calm and await US PCE inflation figures.
The EUR/USD pair extended its recovery to 0.8560 after bouncing from 0.8546 on Tuesday, while traders bide their time awaiting the release of US data.
The Euro drew some support from upbeat German macroeconomic figures released on Tuesday, including a revised higher second quarter's Gross Domestic Product and an IFO Business Climate Index for August that rose to its highest reading in one year.
FX analysts at ING argue that, in the current 'low volatility environment,' sterling is still enjoying some carry demand due to its high volatility-adjusted currency status in G10. They expect EUR/GBP to remain around 0.8550 levels for now.