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The euro fell sharply against the pound on Tuesday, trading near a low of 0.8700 after Bank of England officials made hawkish comments during testimony in the UK Parliament. The central bank’s unified policy stance against persistent inflation and warnings of rising inflationary pressures in the coming years contributed to the currency move.
Looking ahead, market participants are keeping an eye on upcoming economic indicators and a slight improvement is expected in EU consumer confidence, which is forecast to rise from -17.9 to -17.6. This comes ahead of the important Purchasing Managers’ Index (PMI) releases, where hype is building for EU and UK data.
For Thursday, analysts predict a slight rise in the EU HCOB Composite PMI to 46.9, while the UK S&P Global/CIPS Composite PMI is expected to remain stable at 48.7. The manufacturing sector in particular is expected to show an increase from previous figures.
Investors and traders are closely monitoring these developments as they could indicate new movements in the currency markets, particularly between the euro and the pound sterling.
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