The EUR/GBP pair traded around 0.86376, showing limited fluctuations throughout the day as investors analyze a new batch of revised macroeconomic data from the Eurozone and the UK.

Prices remain stable despite the upward revision to the May Eurozone Purchasing Managers' Index (PMI). The HCOB Services PMI was revised to 47.7 from the initial value of 46.4, while the composite PMI was raised to 48.5 compared to the preliminary estimate of 47.5. These data indicate a less sharp contraction in private sector activity than previously expected, although they still confirm the most significant contraction since November 2024.

On the other hand, inflation data continue to support expectations for a more stringent monetary policy. The Producer Price Index (PPI) for the Eurozone in April rose 0.6% after rising 3.4% in March, exceeding analysts' expectations. Year-on-year, producer prices increased by 4.9% compared to the revised figure of 2% from the previous month. On Tuesday, the core Harmonized Index of Consumer Prices (HICP) in the Eurozone rose by 2.5% year-on-year in May, up from 2.2% in April and exceeded the forecast of 2.4%.

Against this backdrop, several representatives of the European Central Bank express a hawkish rhetoric. Olli Rehn from the ECB stated that a rate hike in June may be viewed as a precaution against inflation risks, while Gediminas Simkus emphasized the need for a swift response to prevent entrenched price pressure. Pierre Wunsch also supported the view that arguments for tightening monetary policy remain relevant.

In the UK, PMI data were also revised upward. The S&P Global UK Services PMI was revised to 49.3 from the previous estimate of 47.9, while the composite PMI improved to 49.7 from 48.5. Although both indicators were upgraded, they remain below the 50 mark, indicating the first contraction in business activity in over a year.

However, comments from members of the Bank of England provided some support for the British pound. Megan Greene, a member of the BoE's governing council, noted that she sees increasing reasons for further rate hikes, emphasizing the importance of the speed of response as well as its scale. Earlier, the Governor of the BoE, Andrew Bailey, reaffirmed the central bank's commitment to reducing inflation to the target level of 2%.

The balance of hawkish expectations from both the ECB and the BoE limits directional movements in the EUR/GBP pair, keeping it in a narrow range.

From a technical standpoint, the pair is trading below all significant moving averages, with oscillators indicating a bearish advantage in the market. Bulls need to overcome the 20-day SMA first.

The table below shows the percentage change of the euro against major currencies today. The euro shows the greatest strength against the New Zealand dollar.