- EUR/GBP remains within a narrow range, trading at 0.8709, up 0.02%, and above the 200-DMA.
- Eurozone economic data shows business conditions deteriorating, with PMIs in recessionary territory.
- UK labor market loses steam, with employment data showing the economy shedding -82K workers and unemployment at 4.2%.
The EUR/GBP remains subdued amid the lack of a catalyst, trading within a narrow range of 40 pips and printed losses of 0.02%, though it remained above the 200-day moving average (DMA). At the time of writing, as the Asian session begins, the cross-pair exchanges hands at 0.8709, up 0.02%.
EUR/GBP trades above 0.8700 as economic data from both Eurozone and UK paints a gloomy picture
Economic data from the Eurozone (EU) revealed that business conditions continued deteriorating. Manufacturing, Services, and Composite PMIs, announced by S&P Global, remained in recessionary territory, below forecasts and the previous month’s data. That and Germany’s GfK Consumer Confidence plummeting were a headwind for the EUR/GBP.
On the UK front, the labor market is losing steam while business activity deteriorated in October, increasing the odds of a recession. S&P Global/CIPS Manufacturing and Services PMI remained in recessionary territory. Employment data showed the jobs market is cooling, as the economy shed -82K workers, while the unemployment rate stood at 4.2%.
Meanwhile, according to a Reuters poll, expectations for further tightening are fading, with most economists foreseeing the Bank of England (BoE) to keep rates unchanged at 5.25% on November 2.
Ahead of the week, the European Central Bank (ECB) is expected to hold rates unchanged, though it is projected to leave the door open for further hikes if needed.
EUR/GBP Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD challenges 1.1300, drops to daily lows
The US Dollar's recovery is now picking up extra impulse, sending EUR/USD back to the 1.1300 region and reversing at the same time two consecutive daily advances. In the meantime, investors continue to closely follow developments arounnd the US-China trade crisis.
GBP/USD faces some downside pressure, returns to the low-1.3100s
GBP/USD is now relinquishing part of its earlier advance toward the 1.3200 neighbourhood, receding to the 1.3130-1.3120 band on the back of the rebound in the Greenback and steady anxiety surrounding the tariff narrative.
Gold comes under pressure, breaches $3,200
Gold extends further its correction from earlier record highs near $3,250 amid some apparent alleviated trade concerns and the renewed buying interest in the Greenback. Declining US yields, in the meantime, should keep the downside contained somehow.
Six Fundamentals for the Week: Tariffs, US Retail Sales and ECB stand out Premium
"Nobody is off the hook" – these words by US President Donald Trump keep markets focused on tariff policy. However, some hard data and the European Central Bank (ECB) decision will also keep things busy ahead of Good Friday.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.