Sterling edges up to fresh 17-month high versus euro after UK data
EWU•Sterling reached a fresh 17-month high against the euro as UK data sent mixed signals: the preliminary composite PMI rose to 53.1 in October, while retail sales and consumer confidence weakened.
1. Sterling gains against euro
Sterling edged up to a fresh 17-month high against the euro on Friday and was on track for a fourth straight weekly rise. The euro was roughly unchanged at 83.70 pence after touching 83.62 pence, its lowest level since May 2025.
2. UK data gives mixed signals
The preliminary S&P Global UK Composite Purchasing Managers' Index rose to 53.1 in October from 52.0 in September, above economists’ forecasts. Separate data showed consumers reined in shopping in September, while confidence plunged in October.
3. Caution over outlook
Sterling fell 0.15% to $1.3381 against a strengthening dollar, after reaching $1.3418 on Thursday. Paul Dales of Capital Economics said the PMIs had a stronger tone than recent retail sales and consumer confidence data, while Andrew Wishart of Berenberg said weaker spending could signal consumer pressures and highlight downside risks from rate hikes.
