Sterling edges up to fresh 17-month high versus euro after UK data
SPY•Sterling reached a fresh 17-month high versus the euro as UK data sent mixed signals: the preliminary October composite PMI rose to 53.1 from 52.0, while retail sales and consumer confidence weakened. The euro was roughly unchanged at 83.70 pence after touching 83.62 pence.
1. Mixed UK data
Sterling edged up to a fresh 17-month high versus the euro on Friday and was on track for its fourth straight weekly rise. The preliminary S&P Global UK Composite PMI rose to 53.1 in October, above economists’ forecasts and September’s 52.0, while consumers cut shopping in September and confidence plunged in October.
2. Currency moves
The euro was roughly unchanged at 83.70 pence after reaching 83.62 pence, its lowest level since May 2025. Sterling fell 0.15% to $1.3381 against a strengthening dollar after reaching $1.3418 on Thursday, its highest level since September 16.
3. Outlook and risks
BofA said euro/pound was better priced than euro/yen and euro/Canadian dollar shorts. Strong UK data and easing fiscal concerns have recently supported the pound, while fears of new social unrest in France and elevated energy prices weighed on the euro. Economists cautioned that weaker retail sales and consumer confidence could signal pressure on UK consumer spending.
