Pound-Euro Exchange Rate Flat as Weak Data Hits Both Sides

The British Pound to Euro exchange rate remained flat on Monday due to subdued economic data from both the UK and the Eurozone. The latest manufacturing PMI for the UK showed a decline in business confidence, with the sector slowing from 52.5 in June to 51.9 in July.

Despite this weak print, the report also offered reasons for optimism as UK manufacturing has now remained in expansion territory for nine straight months. In contrast, the Eurozone's largest economy, Germany, released retail sales figures that fell by 1.1% in June, a much steeper decline than expected.

The quiet economic calendar on Tuesday may see the Pound to Euro exchange rate remain subdued. However, external developments such as changes in broader risk appetite or movements in energy prices could trigger increased volatility for the pairing.