EUR/GBP Holds Above 0.8650: Analyzing US-EU Deal & PMI Impacts

Thursday Aug 21 2025 13:00

Duration

1 min

  1. 1. EUR/GBP Consolidates Amid Trade Optimism and Mixed Economic Signals

  2. 1.1 US-EU Trade Deal: Economic Boost or Just a Truce?

  3. 1.2 Diverging PMI Performance in Eurozone and UK

  4. 1.3 Looking Ahead: Focus on Consumer Confidence

EUR/GBP Consolidates Amid Trade Optimism and Mixed Economic Signals

The EUR/GBP pair is trading steadily around 0.8660, consolidating after Wednesday's rebound. This stability comes as markets assess the implications of the US-EU trade agreement and analyze Purchasing Managers' Index (PMI) data from both economies.

US-EU Trade Deal: Economic Boost or Just a Truce?

The United States and the European Union unveiled a long-awaited joint trade framework, aiming to ease trade tensions. The pact includes capping most tariffs at 15%, while U.S. auto duties remain at 27.5% until the EU enacts similar measures. The EU committed to purchasing $750 billion in US energy supplies by 2028, along with $40 billion in American AI chips. In return, European companies will invest $600 billion in strategic U.S. sectors. However, analysts are still studying the full long-term impact of the deal.

Diverging PMI Performance in Eurozone and UK

Eurozone PMI data showed improvement, with manufacturing activity expanding for the first time in months. In contrast, the UK saw strong performance in the services sector, while manufacturing continued to decline. This divergence reflects different economic challenges facing each region.

Looking Ahead: Focus on Consumer Confidence

Attention now shifts to upcoming consumer confidence data, which is expected to shed further light on household spending outlook. The Eurozone Consumer Confidence Index and the UK GfK Consumer Confidence Index are scheduled for release later this week. These readings could influence the near-term trajectory of EUR/GBP. Overall, understanding the underlying economic drivers is crucial when trading this currency pair.

Risk Warning and Disclaimer: This article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform. Trading Contracts for Difference (CFDs) involves high leverage and significant risks. Before making any trading decisions, we recommend consulting a professional financial advisor to assess your financial situation and risk tolerance. Any trading decisions based on this article are at your own risk.

Default Author Avatar

Written by:

number1

Asset List

View Full List
Most Traded Commodities Indices Crypto Shares Forex
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now

Latest

View all

Saturday, 18 October 2025

Duration

5 min

Japan LDP-Ishin Policy Talks: Paving the Way for a New Prime Minister?

Saturday, 18 October 2025

Duration

5 min

Israel Prepares to Reopen Rafah Crossing Amid Ceasefire Violation Claims

Saturday, 18 October 2025

Duration

3 min

Fed's Rate Cut Conundrum: An Outlook to 2026

Latest news

Saturday, 11 October 2025

Indices

Stablecoins as Key U.S. Treasury Market Players: A Look at Shifting Dynamics

Saturday, 11 October 2025

Indices

Powell Paves Way for Rate Cut, But Economic Data Could Upend Bets

Saturday, 11 October 2025

Indices

Japan PM Ishiba's Approval Ratings Surge Amid Election Performance Review

See all news