The euro/pound struggled to recover from losses, fluctuating at 0.8520 in the Asian session. BoE interest rate increases could continue the downward trajectory.

Market investors closely monitor the UK economic calendar, including the August S&P Global/CIPS Composite PMIs release, for insights into future economies and their potential influence on EUR/GBP pair trading decisions.

UK wage increase supports pound sterling and may limit EUR/GBP pair gains, raising concerns about long-term inflation. BoE may raise interest rates by 25 basis points in September, supported by strong GDP and moderate CPI statistics.

The Eurozone and Germany’s preliminary HCOB PMIs releases may cause traders to be wary. However, the Euro is supported by a positive outlook, a weak US Dollar, and falling Treasury bond yields. The Euro is under pressure from China’s economic problems, but additional fiscal stimulus may be encouraging.

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