British Pound-to-Euro Forecast: Strong PMI Data Supports GBP and EUR

Modified: Thursday, 6 August 2026 10:01 BST - Written by David Woodsmith

STORY LINK British Pound-to-Euro Forecast: Strong PMI Data Supports GBP and EUR

The Pound Euro (GBP/EUR) exchange rate traded in a narrow range on Wednesday, with stronger-than-expected services PMI readings lending support to both currencies.

At the time of writing, GBP/EUR was trading at around €1.1662, little changed from the start of the session.

The Pound (GBP) held firm on Wednesday after the UK's final services PMI painted a more encouraging picture of the country's largest economic sector.

July's final reading showed service-sector activity climbed from 48.8 to 52.1, beating the preliminary estimate of 51.8.

The stronger-than-expected data lifted Sterling, although the relatively small upward revision meant the currency's gains remained fairly restrained.

The Euro (EUR) also drew support from a stronger-than-expected set of PMI figures on Wednesday.

The Eurozone's final services PMI revealed the sector returned to growth in July, with the index climbing from 49.4 to 51.7, slightly above the preliminary reading of 51.6.

The return to expansion offered the single currency some encouragement. However, with the improvement proving fairly modest, the Euro was unable to record any significant gains.

Near-Term GBP/EUR Forecast: Weak Eurozone Data Could Limit Euro Upside

Looking ahead, attention on Thursday will first turn to Germany's latest factory orders figures. Economists expect order growth to slow sharply, easing from 1.9% in May to 0.3% in June. A reading in line with forecasts may leave the Euro on the back foot.

Later in the session, the focus shifts to the Eurozone's latest retail sales figures. Sales growth is forecast to ease from 0.2% to 0.1% in June, which could add to the pressure on the single currency.

For the Pound, the UK economic calendar is relatively quiet on Thursday, potentially leaving Sterling without a strong catalyst for movement.

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TAGS: Pound Euro Forecasts