EUR GBP rate hits 17-month low near 0.8360 after diverging UK and Eurozone PMIs
The EUR GBP rate fell to a fresh 17-month low near 0.8360 on Friday following flash PMI surveys. British business growth climbed to an eight-month peak, while softer economic momentum across the euro area weighed on the single currency.
⚡ Key numbers:
- 0.8360 – 17-month low reached by the EUR/GBP exchange rate
- 53.1 – UK S&P Global Composite PMI, an 8-month high vs 51.8 expected
- 51.9 – Eurozone HCOB Composite PMI, down from 53.1 in September
- 49.3 – French Manufacturing PMI, slipping below the 50 expansion threshold
British economy expands at fastest rate since February
The EUR GBP rate extended its decline on Friday, touching levels near 0.8360 as the cross headed for a nearly 3% sell-off across four consecutive weeks of losses, FXStreet reported. The downward pressure deepened after S&P Global flash purchasing managers surveys highlighted sharp divergence between the British and continental economies.
UK private-sector business activity accelerated significantly in October. The preliminary S&P Global Composite PMI rose to 53.1 from 52.0 in September, surpassing the consensus forecast of 51.8. Services activity advanced to 53.1 from 52.1, while manufacturing output climbed to 52.8 from 51.9, reflecting broad-based expansion across both major segments.
“the UK economy has picked up momentum in October, with early PMI data indicating the strongest rate of growth since February”
— Chris Williamson, Chief Business Economist at S&P Global Market Intelligence (via FXStreet)
Eurozone expansion loses momentum amid French contraction
In contrast to the UK figures, business activity across the euro area expanded at a softening pace. The preliminary Eurozone HCOB Composite PMI dropped to 51.9 in October from 53.1 in September, missing analysts' forecasts of 52.7 and marking a four-month low. Manufacturing PMI across the bloc eased to a three-month low of 52.4.
The eurozone slowdown was particularly evident in France, where the manufacturing index retreated to 49.3 from 50.6, slipping back into contraction territory. German manufacturing proved resilient at 54.2, up from 53.9, though services activity slowed to 51.7. On the broader foreign exchange market, EUR/USD slipped toward 1.1201, down 0.3% on the day, with policy considerations remaining tight as highlighted in previous analyses where the ECB backed into a corner confronts persistent core pressures.
Technical levels and monetary policy divergence
According to Kenneth Broux of Societe Generale, EUR/GBP extended its drop following the breach of its July low and is now testing channel support located between 0.8370 and 0.8355. Despite the strong domestic data, Cable (GBP/USD) struggled against broad dollar strength, trading around 1.3380, down 0.1% on the session, while the US Dollar Index (DXY) rose to 101.76.
The contrasting survey outcomes have reinforced diverging rate path expectations. Elias Haddad at Brown Brothers Harriman noted that the UK PMI beat supports expectations for a 25 bps Bank of England hike to 4.00% in November, whereas Commerzbank economists project the European Central Bank will maintain its deposit rate at 2.50% before considering adjustments later in the year.
What to watch next
- Bank of England's upcoming November monetary policy meeting
- Final October manufacturing and services PMI readings from S&P Global
- Support stability on EUR/GBP around the 0.8355 technical threshold
Frequently asked questions
Why did the EUR GBP rate sink to a 17-month low?
The euro dropped against the pound after October flash PMIs revealed UK business activity rose to an 8-month peak of 53.1, while Eurozone activity softened to 51.9, dragged by a contraction in French manufacturing.
What were the key UK PMI numbers for October 2026?
The UK S&P Global Composite PMI reached 53.1 against 51.8 expected, with the Services PMI rising to 53.1 and Manufacturing PMI improving to 52.8.
How did major currency pairs react to the release?
EUR/GBP tested support near 0.8360, while EUR/USD declined to 1.1201 and GBP/USD traded slightly lower around 1.3380 amid broad US dollar resilience.
Sources: FXStreet, Comparic, money.pl, Interia Biznes, Bankier.pl, Yahoo Finance.
Disclaimer: This article is for information purposes only and does not constitute investment advice. Data as of Oct 23, 2026, 18:35 may vary by source. Trading leveraged CFDs carries a high risk of losing money.
This article contains AI-generated content.
