EUR/GBP hits session highs at 0.8680 on upbeat Eurozone PMIs, trade deal hopes
- The Euro crawls higher against the Pound after the release of Eurozone and UK preliminary PMIs.
- Eurozone Business activity beat expectations, driven by the services sector’s growth.
- Markets awaiting details about the EU-US trade deal and the ECB decision.
The Euro is posting moderate gains on Thursday, after bouncing from 0.8640 on Wednesday, but remains trapped within the weekly range, with investors awaiting details of a widely expected trade deal with the US, and the outcome of the European Central Bank’s meeting.
News reporting that Eurozone and US negotiators might be close to a trade deal has provided some support to the Euro earlier on Thursday. European Commission officials revealed that the agreement would include 15% tariffs on Eurozone imports, with exemptions for automobiles, medical devices, and alcoholic beverages.
Eurozone preliminary PMIs for July beat expectations
In the meantime, data from the Eurozone has been mixed, with Preliminary PMIs showing stronger-than-expected business activity, mainly in the services sector, yet the German GfK Consumer Confidence survey confirms the soft momentum of the bloc’s major economy.
In the UK, on the contrary, Preliminary PMI data have disappointed, with the services sector’s growth slowing down against expectations, while manufacturing activity improved but well within contraction levels.
bank’s
The highlight today is the ECB’s monetary policy decision. The bank is widely expected to keep interest rates on hold, but the market will be analysing President Lagarde’s speech for clues about the bank’s near-term policy.
Economic Indicator
HCOB Manufacturing PMI
The Manufacturing Purchasing Managers Index (PMI), released on a monthly basis by S&P Global and Hamburg Commercial Bank (HCOB), is a leading indicator gauging business activity in the Eurozone manufacturing sector. The data is derived from surveys of senior executives at private-sector companies from the manufacturing sector. 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 manufacturing economy is generally expanding, a bullish sign for the Euro (EUR). Meanwhile, a reading below 50 signals that activity among goods producers is generally declining, which is seen as bearish for EUR.
Read more.Last release: Thu Jul 24, 2025 08:00 (Prel)
Frequency: Monthly
Actual: 49.8
Consensus: 49.8
Previous: 49.5
Source: S&P Global
Economic Indicator
HCOB Services PMI
The Services Purchasing Managers Index (PMI), released on a monthly basis by S&P Global and Hamburg Commercial Bank (HCOB), is a leading indicator gauging business activity in the Eurozone services sector. As the services sector dominates a large part of the economy, the Services PMI is an important indicator gauging the state of overall economic conditions. The data is derived from surveys of senior executives at private-sector companies from the services sector. 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 services economy is generally expanding, a bullish sign for the Euro (EUR). Meanwhile, a reading below 50 signals that activity among services providers is generally declining, which is seen as bearish for EUR.
Read more.Last release: Thu Jul 24, 2025 08:00 (Prel)
Frequency: Monthly
Actual: 51.2
Consensus: 50.8
Previous: 50.5
Source: S&P Global
Economic Indicator
S&P Global Manufacturing PMI
The Manufacturing Purchasing Managers Index (PMI), released on a monthly basis by S&P Global, is a leading indicator gauging business activity in the UK’s manufacturing sector. The data is derived from surveys of senior executives at private-sector companies. 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 manufacturing economy is generally expanding, a bullish sign for the Pound Sterling (GBP). Meanwhile, a reading below 50 signals that activity among goods producers is generally declining, which is seen as bearish for GBP.
Read more.Last release: Thu Jul 24, 2025 08:30 (Prel)
Frequency: Monthly
Actual: 48.2
Consensus: 48
Previous: 47.7
Source: S&P Global
Economic Indicator
S&P Global Services PMI
The Services Purchasing Managers Index (PMI), released on a monthly basis by S&P Global, is a leading indicator gauging business activity in the UK’s services sector. 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), 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 services economy is generally expanding, a bullish sign for the Pound Sterling (GBP). Meanwhile, a reading below 50 signals that activity among service providers is generally declining, which is seen as bearish for GBP.
Read more.Last release: Thu Jul 24, 2025 08:30 (Prel)
Frequency: Monthly
Actual: 51.2
Consensus: 53
Previous: 52.8
Source: S&P Global
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
