The EUR/GBP pair posted losses for a third consecutive day, though it remains confined within a tight 0.8700-0.8740 trading band. The decline follows a series of disappointing manufacturing reports from both the Eurozone and the UK.
The Eurozone’s industrial sector contracted faster than initially estimated in December. The final HCOB Manufacturing PMI was revised down to 48.8 from the preliminary 49.2 reading, continuing a downward trend seen in November (49.6) and October (50.0).
Regionally, Germany’s final PMI was downgraded to 47.0 from an initial 47.7 estimate. Similarly, Italy’s manufacturing slowed significantly to 47.9 from November’s 50.6, while Spain slipped into contraction territory at 49.6. France was the notable outlier, recording a slight tick up to 50.7.
Conversely, while the UK’s final S&P Global Manufacturing PMI was also revised lower, it remained in expansion territory. The December reading stood at 50.6—down from the preliminary 51.2 estimate, but still an improvement over November’s 50.2 figure.
