EUR/GBP retreats from 0.8550 ahead of German PMI data

• EUR/GBP remains under pressure on Tuesday.
• The Euro remains muted despite the upbeat economic data.
• The sterling gains on the strong PMI data, coronavirus ebb.

EUR/GBP prints some minor losses in the Asian trading hours on Tuesday. The pair failed to capitalise on the previous day’s gain and retreats below  0.8550. 

At the time of writing, EUR/GBP is trading at 0.8544 down 0.04 % for the day.

The shared currency continues to decline against the pound despite some recent strong economic numbers. The IHS Markit Eurozone Manufacturing PMI came at 62.8 in July, as compared to market estimates of 62.6.

The Euro Area economy rose to 2.0% in June on a quarterly basis, beating the market expectations of 1.5% growth. Investors expected that the European Central Bank (ECB) would remain dovish in the near term after policymakers pledged last month to keep interest rates at record levels.

On the other hand, the sterling gained some traction on the optimism of falling coronavirus infections in the UK and on the upcoming Bank of England (BOE) policy meeting on Thursday.

Investors anticipate that BOE will not change its current monetary policy stance, the focus will be given to the forward guidance on growth and inflation.

As for now, the market dynamics continue to influence the pair’s performance in the short term.

EUR/GBP additional levels