GBP/EUR Rangebound as Investors Await Fresh Catalysts
The Pound-Euro exchange rate remains stuck in a narrow range as investors await fresh catalysts to break the deadlock. The latest manufacturing and retail data from the UK and Eurozone have failed to provide a clear directional driver, leaving GBP/EUR trading at €1.1674 on Monday.
Disappointing figures from the UK's final manufacturing PMI saw the reading ease from 52.5 in June to 51.9 in July, below the preliminary estimate of 52.8. This reflected softer business confidence following renewed tensions surrounding the US-Iran conflict.
However, the survey highlighted encouraging underlying trends, with UK manufacturing expanding for nine consecutive months after its prolonged downturn in 2025. Meanwhile, Germany's latest retail sales figures disappointed, falling by 1.1% in June, significantly weaker than expectations for a 0.5% decline.
The lack of data to drive movement may leave the Pound to Euro exchange rate trading in another narrow range on Tuesday. The Euro could be influenced by its strong inverse relationship with the US Dollar, with weaker US factory orders potentially offering support to the single currency.