Euro's Gains Against Pound Trimmed Amid German Consumer Confidence Boost

The Euro (EUR) has been trading higher against the British Pound (GBP) for three consecutive days, but its gains are being trimmed despite upbeat German Consumer Confidence data. The EUR/GBP pair currently trades at 0.8575 after hitting intra-day highs near 0.8580 during Asian trading.

German consumers' confidence improved to -26.6 in September, exceeding market expectations of a moderate deterioration to -29.6. This improvement is largely due to a significant increase in income expectations and a decline in the willingness to save.

Rabobank strategists consider that steady policy from the Federal Reserve could undermine the Pound, which has been trading lower against most peers this week. The GBP/USD is on track for a 0.4% weekly decline, weighing the Sterling across the board as investors await further clues about monetary policy plans.