Anna 
During the European session on Thursday, EUR/GBP made gains, reaching near 0.8520, driven by Euro strength following impressive Eurozone Preliminary Manufacturing Purchasing Managers Index (PMI) data. The Eurozone manufacturing sector saw an improvement in May, with the PMI rising to 47.4 from April’s 45.7, surpassing expectations and reaching a 15-month high. The Services PMI remained steady at 53.3, just below estimates, while the Composite PMI increased to 52.3, marking a 12-month high.
In Germany, the manufacturing sector’s contraction slowed in May, with the Manufacturing PMI rising to 45.4, its highest level in four months. The Services PMI also saw improvement, reaching 53.9, hitting an 11-month peak.
In the UK, mixed PMI data allowed the Pound Sterling (GBP) to hold its ground. The UK Manufacturing PMI improved to 51.3 in May, surpassing expectations, while the Services PMI fell to 52.9, missing consensus. However, Chief Business Economist at S&P Global Market Intelligence, Chris Williamson, noted that the flash PMI survey data signaled further expansion of UK business activity, suggesting ongoing economic recovery from late last year’s mild recession.
Furthermore, the British Pound received support as the Bank of England (BoE) might delay its shift to policy normalization, considering the UK Consumer Price Index (CPI) report for April showed inflation softened at a slower pace than expected.
