EUR/GBP Slides Below 0.8550 as UK Services PMI Strengthens, Market Eyes BoE and ECB Speeches

EUR/GBP Drops to 0.8545 as UK Services PMI Outperforms, Eyes on Bailey and Lagarde

June 25, 2025 – Tredu Forex News

The EUR/GBP currency pair continued its slide during the early Tuesday European session, reaching 0.8545, its lowest level in over a week. The move was driven by stronger-than-expected UK business activity data, which boosted the British Pound (GBP), while Euro (EUR) sentiment remains under pressure.

UK Services Sector Shows Resilient Growth

UK’s S&P Global Composite PMI for June rose to 50.7, above the 50.5 consensus and May’s 50.3 print. More notably, the services sector, which accounts for the bulk of UK GDP, posted its fastest expansion in three months, outperforming both Germany and France.

This positive momentum in UK economic activity supports the Pound Sterling, especially ahead of an expected speech from Bank of England Governor Andrew Bailey later today.

Euro Faces Pressure Amid Cautious ECB Tone

Meanwhile, the Euro remains subdued amid concerns over slowing Eurozone growth, rising geopolitical tensions, and fresh tariff uncertainties following US President Donald Trump’s latest trade policy remarks.

ECB policymaker Francois Villeroy de Galhau signaled that rate cuts remain on the table given the fragile macroeconomic backdrop. This dovish outlook is likely to weigh further on the Euro in the absence of strong recovery signals.

Central Bank Speeches in Focus

Traders now await speeches from both BoE’s Bailey and ECB’s Lagarde later on Tuesday, which could provide fresh clues on interest rate policy, inflation outlooks, and the relative strength of their respective currencies.

Key Takeaways:

• EUR/GBP trades around 0.8545, pressured by strong UK PMI.
• UK services activity outpaces Eurozone peers.
• ECB remains dovish; Villeroy suggests rate cuts still possible.
• Markets await speeches from Bailey and Lagarde for direction.

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