Euro falters against Pound as Bank of England takes hawkish stance

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Euro falters against Pound as Bank of England takes hawkish stance
Credit: © Reuters.

The euro fell sharply against the British pound on Tuesday, trading near a low of 0.8700 after officials from the Bank of England delivered hawkish remarks during a UK Parliament testimony. The central bank's unified policy stance against persistent inflation and warnings about increasing inflation pressures in the coming years contributed to the currency movement.

Looking ahead, market participants are eyeing upcoming economic indicators with a slight improvement expected in EU Consumer Confidence, which is forecasted to rise from -17.9 to -17.6. This comes ahead of significant Purchasing Managers' Index (PMI) releases, where anticipation is building for both EU and UK data.

For Thursday, analysts predict a slight climb in the EU's HCOB Composite PMI to 46.9, while the UK's S&P Global/CIPS Composite PMI is expected to remain steady at 48.7. The manufacturing sector in particular is forecasted to show an increase from previous figures.

Investors and traders are closely monitoring these developments as they could signal further movements in the currency markets, particularly between the euro and pound sterling.

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