Market Analysis

The EUR/GBP currency pair has extended its winning streak for the fourth consecutive day, trading around 0.8360 during European hours on Monday. This movement follows disappointing Purchasing Managers' Index (PMI) data from both the Eurozone and the United Kingdom.

In the UK, the preliminary S&P Global/CIPS Manufacturing PMI dropped to 51.5 in September, down from 52.5 in August, falling short of the expected 52.3. Similarly, the Services PMI fell to 52.8 from 53.7, also below the market forecast of 53.5. Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, noted that “a slight cooling of output growth in manufacturing and services this month should not be overly concerning.”

In the Eurozone, the HCOB Composite PMI declined to 48.9 in September, down from August's 51.0 and significantly lower than the expected 50.6, marking an eight-month low. The Services PMI sharply decreased to 50.5 from 52.9 in August, well below the anticipated 52.4 and reaching a seven-month low. Additionally, the Manufacturing PMI fell from 45.8 in August to 44.8 in September, missing the expected 45.6 and hitting a nine-month low.

On Friday, European Central Bank President Christine Lagarde emphasized the need for adaptable monetary policy in an ever-changing environment. While the core objectives, particularly price stability, remain unchanged, central banks must retain the flexibility to address the challenges posed by a rapidly evolving global economy, according to Euronews.

Paraphrasing text from "FX Street" all rights reserved by the original author.