British Pound Hits 17-Month Peak Against Euro Amid Mixed UK Economic Data
The British pound climbed to a 17-month high against the euro, bolstered by strong business activity data despite ongoing concerns over UK retail sales.
POLICY WIRE — London, United Kingdom — The British pound reached a fresh 17-month high against the euro on Friday, marking its fourth consecutive week of gains. The currency’s upward momentum persisted even as recent data presented a conflicting picture of the domestic economy.
Market sentiment was buoyed by the preliminary S&P Global UK Composite Purchasing Managers’ Index, which climbed to 53.1 in October. This figure surpassed economist expectations and improved upon the 52.0 reading recorded in September.
The sterling’s performance was further supported by a broader trend of strength observed earlier in the week. On Monday, the currency hit a 17-month high as the euro faced downward pressure from elevated energy costs and civil unrest in France, while reduced anxiety regarding the UK’s fiscal trajectory provided additional support.
During Monday’s session, the pound traded at 84.11 pence per euro, reflecting a 0.25% increase. Earlier in the day, it touched 83.95 pence, representing its strongest position since May 2025.
Despite these gains, the economic outlook remains nuanced. The positive business activity data stands in contrast to recent reports showing a decline in British consumer confidence and a slowdown in retail sales throughout September.
Reporting by Policy-Wire (PW)
