Anna 
In today’s trading session, the euro (EUR) relinquished some of its gains from the previous day, with EUR/USD sliding 0.1% to 1.0689. This slight retreat comes after the currency pair registered an increase of nearly 0.5% on Tuesday, driven by data indicating a robust expansion in business activity across the eurozone, particularly in the services sector.
In Germany, Europe’s largest economy, early April brought a notable uptick in sentiment, as evidenced by the country’s Ifo business climate index climbing to 89.4 from a revised 87.9 in the previous month.
Despite the European Central Bank’s (ECB) indication of an impending rate cut at its upcoming policy meeting on June 6, Bundesbank President Joachim Nagel remarked on Wednesday that further policy easing may not necessarily follow if eurozone inflation remains resilient.
Similarly, the British pound (GBP) experienced a minor setback, with GBP/USD declining 0.1% to 1.2430, after posting gains of approximately 0.8% in the preceding session. Sterling’s advance was supported by overnight data revealing a notable upturn in activity growth among British businesses, marking the fastest pace of expansion in nearly a year.
While the Bank of England is anticipated to implement rate cuts of at least half a percentage point this year, robust economic indicators could prompt the central bank to delay its initial rate cut until after the summer months.
