Euro backs off five-month high against dollar

Euro fell in European trade on Tuesday against the pound on track for the second loss in three days, away from five-month highs on active profit-taking.

Now investors await important UK and European data later today on the manufacturing and services sector. 

EUR/GBP

EUR/GBP fell 0.1% to 0.8702, with a session-high at 0.8713, after rising 0.1% yesterday, resuming gains and approaching five-month highs at 0.8740.

Major Sectors

Later today, major data on economic performance in the UK and Europe will be released, important to gauge the likely path ahead for monetary policies. 

Central Banks 

The European Central Bank is convening this week, widely expected to maintain interest rates unchanged.

Bank of England as well isn't expected to raise interest rates again this year, and could actually be one of the earliest central banks to cut interest rates next year. 

Interest Rate Gap

The current interest rate gap between the UK and Europe stands at 75 basis points in favor of UK rates, the lowest since March 2022.