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 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.

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 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 HCOB Preliminary 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.