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EUR/GBP fell for a fourth consecutive session after purchasing managers’ index (PMI) data from the euro zone and the UK came in below expectations. During the European session on Monday, EUR/GBP was trading around 0.8360.
The preliminary S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) fell to 51.5 in September from 52.5 in August, below market expectations of 52.3. Likewise, the services PMI fell to 52.8 in September from 53.7 in August, also below market expectations of 53.5.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said: “Output growth in the manufacturing and services sectors cooled slightly in September and should not be overly concerning.”
In the Eurozone, the HCOB composite PMI fell to 48.9 in September, down from 51.0 in August and expectations of 50.6, and an eight-month low. The services PMI fell sharply to 50.5 from 52.9 in August, well below market expectations of 52.4 and hitting a seven-month low. At the same time, the manufacturing purchasing managers index fell further, falling from 45.8 in August to 44.8 in September, which was worse than the expected 45.6 and hit a new low in nine months.
On Friday, European Central Bank (ECB) President Christine Lagarde said that monetary policy needs to remain adaptable in a changing world. According to Euronews, while the core objectives of monetary policy, particularly price stability, remain unchanged, central banks must remain flexible to respond to the challenges posed by the rapidly changing global economy.
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