The euro fell to a fresh 17-month low against sterling, with EUR/GBP trading near 0.8360 and extending a four-week losing streak that has taken the pair down nearly 3% over the past month. UK October PMI readings strengthened the rate narrative around a possible Bank of England move in November, after S&P Global’s flash survey pointed to faster private-sector momentum. Manufacturing PMI rose to 52.8 from 51.9, beating expectations of 51.8, while Services PMI climbed to 53.1 from 52.1, contrary to forecasts for 51.8.
UK Private-Sector Momentum Strengthens Rate Expectations
UK October PMI readings strengthened the rate narrative around a possible Bank of England move in November, after S&P Global’s flash survey pointed to faster private-sector momentum. Manufacturing PMI rose to 52.8 from 51.9, beating expectations of 51.8, while Services PMI climbed to 53.1 from 52.1, contrary to forecasts for 51.8.
Eurozone Growth Moderates as Divergences Persist
Across the Eurozone, October flash data pointed to a moderation in growth, with France acting as a drag after September’s first expansion in 10 months, while Germany and the wider bloc remained in expansion but cooled. The HCOB Manufacturing PMI eased to 52.4 from 52.9, under the 52.8 consensus, and Services PMI fell to 51.7 from 53.0, also below 52.8. Germany’s split persisted: Manufacturing improved to 54.2 from 53.9, whereas Services slipped to 51.7 from 53.0.
