Euro hits fresh 17-month lows against British Pound after Eurozone, UK PMIs
- EUR/GBP extends losses to levels near 0.8360 and heads to a nearly 3% decline in a 4-week sell-off.
- UK PMIs show strong business activity figures in October, adding to evidence of a resilient UK economy.
- Eurozone PMIs highlight a moderate slowdown, as France's activity contracted again in October.
The Euro (EUR) keeps struggling to find a bottom against a strong British Pound (GBP) on Friday, as UK business activity data strengthened the case for a Bank of England (BoE) interest rate hike in November, while Eurozone data increased concerns about France. The EUR/GBP pair has dropped to a fresh 17-month low near 0.8360, on track for a nearly 3% sell-off in a four-week losing streak.
Business activity accelerated in the UK in October, as measured by the S&P Global Flash Purchasing Managers Index. The Manufacturing PMI improved to 52.8 from 51.9 in September, beating expectations of a slight decline to 51.8, while the Services PMI rose one whole point, to 53.1, also against the market forecast for a decline to 51.8
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, affirmed that “the promising economic picture from the latest PMIs should provide an encouraging base for further robust economic growth through the winter months, barring any adverse surprises to businesses in the tax and spending review.”
Eurozone’s business activity shows a moderate slowdown
In the Eurozone, preliminary business activity data for October revealed that private sector growth eased, weighed by the contraction figures in France, following the first rise in 10 months in September, while Germany and the rest of the region as a whole continued growing, although at a slower pace.
Eurozone’s HCOB Manufacturing PMI eased to 52.4 from 52.9 in September, below the 52.8 reading expected by the market, and the Services PMI dropped to 51.7 from 53 in the previous month, also below the 52.8 reading anticipated by the market.
Data from Germany has been mixed, with the HCOB Manufacturing PMI accelerating to 54.2 from 53.9 in September, while Services activity eased to 51.7 from 53 in the previous month.
Economic Indicator
S&P Global Composite PMI
The Composite Purchasing Managers Index (PMI), released on a monthly basis by S&P Global, is a leading indicator gauging private-business activity in UK for both the manufacturing and services sectors. The data is derived from surveys to senior executives. Each response is weighted according to the size of the company and its contribution to total manufacturing or services output accounted for by the sub-sector to which that company belongs. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation.The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the UK private economy is generally expanding, a bullish sign for the Pound Sterling (GBP). Meanwhile, a reading below 50 signals that activity is generally declining, which is seen as bearish for GBP.
Last release: Fri Oct 23, 2026 08:30 (Prel)
Frequency: Monthly
Actual: 53.1
Consensus: 51.8
Previous: 52
Source: S&P Global
Economic Indicator
HCOB Composite PMI
The Composite Purchasing Managers’ Index (PMI), released on a monthly basis by S&P Global and Hamburg Commercial Bank (HCOB), is a leading indicator gauging private-business activity in the Eurozone for both the manufacturing and services sectors. The data is derived from surveys to senior executives. Each response is weighted according to the size of the company and its contribution to total manufacturing or services output accounted for by the sub-sector to which that company belongs. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the private economy is generally expanding, a bullish sign for the Euro (EUR). Meanwhile, a reading below 50 signals that activity is generally declining, which is seen as bearish for EUR.
Last release: Fri Oct 23, 2026 08:00 (Prel)
Frequency: Monthly
Actual: 51.9
Consensus: 52.7
Previous: 53.1
Source: S&P Global
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