EUR/GBP hovered near 0.8550 on Friday, little changed even as Eurozone and UK indicators surprised to the upside. Market moves stayed restrained as geopolitical tensions in the Middle East, firmer energy prices and fresh tariff announcements from the US President Donald Trump administration kept risk appetite in check and supported demand for safe-haven assets.
Eurozone & German PMI Performance
Eurozone flash S&P Global PMIs strengthened, led by Germany where the Manufacturing PMI rose to 52.2 in July from 50.3 in June, above the 50.1 consensus, while the Composite PMI moved into expansion at 51.2 with services still just below 50. In the wider bloc, Manufacturing PMI increased to 52 from 51.4, beating a 51.3 forecast, and Services PMI returned to growth at 51.6, taking the Composite to 51.9.
UK Economic Data And ECB Comments
In the UK, Retail Sales climbed 1% month-on-month in June versus expectations for a 0.3% fall; Services PMI printed 51.8 and Manufacturing 52.8, lifting the Composite to 52.1. ECB Governing Council member Martin Kocher cited no hard evidence of second-round inflation effects, while pointing to oil-market developments as a concern.
