Euro Gains Against Pound on Upbeat German Economic Sentiment
The Euro has ticked higher against the British Pound on Tuesday, driven by upbeat German economic sentiment figures. The EUR/GBP pair reached session highs at 0.8555, inching closer to the top of its weekly range.
Data from the ZEW Institute revealed that the German Economic Sentiment Index rose to 34.2 in August from 26.3 in July, exceeding expectations of a more moderate improvement to 30.
The report shows brighter economic expectations across all sectors as Germany benefits from infrastructure plans. However, it also warns of serious threats from record low water levels in the Rhine.
Institutional investors' sentiment about the current economic situation improved to -61.1, its best reading since July last year, beating expectations of a -68.8 reading.