Published date: 19 May 2025

GBPEUR

GBP/EUR is trading in ultra-tight ranges, permissible after recent solid gains in favour of sterling and a light data schedule. Fresh details around a new UK-EU relationship concerning defense security, food safety, etc., are to be announced by Starmer and Ursula von der Leyen in London today, which can be seen as a broad positive for both currencies after many years of Brexit-related constraints.

GBPUSD

GBP/USD continued to trade within a tight consolidation range last week, amid a light UK data schedule and a dollar that struggled to build on improved risk sentiment toward US equities. A notable theme at this juncture is the dollar’s inability to track higher alongside recovery equity markets. Plentiful UK data releases are scheduled this week, from inflation data to PMI and retail sales, offering potential impetus to a somewhat stale sterling sentiment.

EURUSD

EUR/USD continued to trade in a tight range last week, while resisting any chance of a deeper retracement, given the market’s lack of appetite to buy the dollar despite strong gains in US equity markets. Some upside is seen to start the week due to a downgrade of the US credit rating (by Moody’s). Thursday’s manufacturing and services PMI for both the Eurozone and the US are likely to be the main data drivers of sentiment this week.