EUR/GBP depreciates to near 0.8300, remains tepid after Eurozone PMI figures

EUR/GBP holds losses following the release of Purchasing Managers Index data from the Eurozone and Germany.
The preliminary HCOB Eurozone PMI Composite improved to 49.7 in October, against the previous 49.6 reading.
Traders will likely observe the UK Purchasing Managers Index scheduled to be released later in the day.

Akhtar Faruqui FXStreet

EUR/GBP retraces its recent gains registered in the previous session, trading around 0.8320 during the European hours on Thursday. The Euro remains tepid against the Pound Sterling (GBP) following the preliminary HCOB Purchasing Managers Index (PMI) data from the Eurozone and Germany.

The HCOB Eurozone PMI Composite edged up to 49.7 in October as expected, slightly surpassing September's reading of 49.6, marking a two-month high. In contrast, the Services PMI dipped to 51.2 in October, down from 51.4 in September and falling short of the forecasted 51.6, hitting its lowest level in eight months. Meanwhile, the Manufacturing PMI increased to 45.9 from 45.0 prior, outperforming the anticipated 45.1 and reaching a five-month high.

Moreover, the preliminary HCOB German Composite Output Index increased to 48.4 in October, up from 47.5 in September, marking its highest level in two months. The Manufacturing PMI climbed to 42.6, surpassing September's 40.6 and beating the forecast of 40.5. Meanwhile, the Services PMI rebounded to 51.4 from 50.6 prior, exceeding market expectations of 50.5 and hitting a three-month high.

During a discussion at the Institute of International Finance's annual membership meeting in Washington, D.C., on Wednesday, Bank of England Governor Andrew Bailey stated that inflation is currently below target due to annual base effects. Bailey noted that the high savings rate indicates consumer caution and added that pension funds should not be required to make compulsory allocations to UK assets.

The British Pound gains ground ahead of the release of the Purchasing Managers Index data from the United Kingdom (UK), scheduled for later in the day. Traders are also expected to pay attention to a speech by Bank of England (BoE) Monetary Policy Committee member Catherine Mann at a panel discussion during the Reinventing Bretton Woods Global Macro Economy event in Washington, D.C. Additionally, the focus will shift to BoE Governor Andrew Bailey's lecture at the Mike Gill Memorial hosted by the CFTC.

Economic Indicator

HCOB Composite PMI

The Composite Purchasing Managers’ Index (PMI), released on a monthly basis by S&P Global and Hamburg Commercial Bank (HCOB), is a leading indicator gauging private-business activity in the Eurozone for both the manufacturing and services sectors. The data is derived from surveys to senior executives. Each response is weighted according to the size of the company and its contribution to total manufacturing or services output accounted for by the sub-sector to which that company belongs. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the private economy is generally expanding, a bullish sign for the Euro (EUR). Meanwhile, a reading below 50 signals that activity is generally declining, which is seen as bearish for EUR.

EUR/USD rises to near 1.1650 amid dovish Fed expectations

EUR/USD edges higher after registering gains in the previous six successive sessions, trading around 1.1650 during the Asian hours on Monday. The pair appreciates as the US Dollar struggles amid dovish Federal Reserve expectations. Friday’s slower-than-expected US jobs growth suggests the US central bank could hold interest rates steady later this month.

GBP/USD rebounds from three-week low, eyes mid-1.3400s as Fed concerns weigh on USD

The GBP/USD pair attracts some buyers near a technically significant 200-day Simple Moving Average (SMA) and recovers slightly from a nearly three-week low, touched during the Asian session on Monday. Spot prices, for now, seem to have snapped a four-day losing streak and currently trade around the 1.3435 region, up 0.20% for the day.

Gold tests $4,600, then retreats despite geopolitical, Fed woes

Gold retreats from fresh record highs of $4,601 in the Asian session on Monday. Reports that US President Donald Trump is weighing a series of potential military options in Iran fuel the risk of a further escalation of geopolitical tensions will likely keep Gold underpinned despite the latest profit-taking pullback.

Week ahead: US CPI might challenge the geopolitics-boosted Dollar

Geopolitics may try to steal the limelight from US data. A possible US Supreme Court ruling on tariffs could dictate market movements. Dollar strength might be tested if investors refocus on Fed expectations. A crammed data calendar next week, US CPI comes on Tuesday; Fedspeak to intensify. Euro weakness persists, lingering risk of deterioration in US-EU relations.

2026 economic and market outlook

As an aggregate, key economic indicators point towards the global economy growing further in out 2026 Economic and Market outlook. In particular, the G20 countries, which account for roughly 80% of the total global GDP are projected to grow by 2.9% next year.

XRP trades under pressure amid weak retail demand

XRP presses down on the 50-day EMA support as risk-averse sentiment spreads despite a positive start to 2026. XRP faces declining retail demand, as reflected in futures Open Interest, which has fallen to $4.15 billion.