{"id":31470,"date":"2026-03-24T16:59:37","date_gmt":"2026-03-24T16:59:37","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/31470\/"},"modified":"2026-03-24T16:59:37","modified_gmt":"2026-03-24T16:59:37","slug":"eur-gbp-stays-near-0-8650-as-investors-absorb-weaker-eurozone-and-uk-pmi-data-implying-slower-growth","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/live-updates\/31470\/","title":{"rendered":"EUR\/GBP stays near 0.8650 as investors absorb weaker Eurozone and UK PMI data, implying slower growth"},"content":{"rendered":"EUR\/GBP traded near 0.8650 on Tuesday and was little changed on the day. The move came after weaker activity data from both the Eurozone and the UK, pointing to slower growth.\n\nIn the Eurozone, the preliminary HCOB Composite PMI fell to 50.5 in March from 51.9 in February, below expectations. Services eased to 50.1, while manufacturing rose to 51.4.\n\n

Eurozone Cost Pressures And Supply Risks<\/h3>\nThe report also noted higher energy prices linked to the war in the Middle East and added supply chain disruption. Supplier delivery times lengthened, and input costs rose at the fastest pace in more than three years.\n\nIn the UK, the S&P Global Composite PMI dropped to 51 in March from 53.7. Services fell to 51.2 from 53.9, and manufacturing also slowed.\n\nTD Securities pointed to rising cost pressures from higher energy prices and supply issues. It expects UK inflation to hold at 3% year on year in February, with a possible rise in coming months.\n\nAttention turns to comments from ECB officials later on Tuesday. Markets also await UK inflation data on Wednesday for further policy direction.\n\n

Trading Implications For Eurgbp Options<\/h3>\nWith both the Eurozone and the UK showing clear signs of a growth slowdown, the stability in EUR\/GBP around 0.8650 looks fragile. We are seeing weak PMI data across the board, which points to a loss of economic momentum. This stagnation, combined with rising costs, is creating a difficult environment.\n\nThe main concern is the return of stagflation fears, fueled by rising energy prices from Middle East conflicts and new supply chain disruptions. We are seeing firms\u2019 costs increase at the fastest rate in years, a worrying echo of the inflationary spike we witnessed a few years ago. This puts central banks in a bind, as they were hoping for a smoother path after the disinflationary trend we saw through 2024 and 2025.\n\nFor derivative traders, this uncertainty is an opportunity to look at volatility. With both the European Central Bank and the Bank of England facing tough choices, implied volatility on EUR\/GBP options could be underpriced. Buying straddles or strangles could be a sound strategy to position for a significant breakout, regardless of the direction.\n\nThe upcoming UK inflation data is a critical catalyst. We saw UK inflation prove sticky throughout last year, struggling to fall below the 3% level, and another high reading could force the Bank of England to adopt a more hawkish tone than the ECB. This would create a divergence in policy expectations, likely pushing EUR\/GBP lower.\n\nOn the other hand, if speeches from ECB officials highlight a greater concern for inflation over growth, the dynamic could reverse. Given that Eurozone inflation has also been stubborn, any signal that rate cuts are off the table would support the euro. The key is to use options to bet on which economy is perceived to be in a worse position.\n\nCreate your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b>\n

\r\n\r\n

Start trading now – Click here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n","protected":false},"excerpt":{"rendered":"

EUR\/GBP hovered near 0.8650 as weak Eurozone and UK PMIs signaled slower growth, rising cost pressures.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-31470","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/31470","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=31470"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/31470\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=31470"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=31470"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=31470"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}