• EUR/GBP remains within a narrow range, trading at 0.8709, up 0.02%, and above the 200-DMA.
• Eurozone economic data shows business conditions deteriorating, with PMIs in recessionary territory.
• UK labor market loses steam, with employment data showing the economy shedding -82K workers and unemployment at 4.2%.

The EUR/GBP remains subdued amid the lack of a catalyst, trading within a narrow range of 40 pips and printed losses of 0.02%, though it remained above the 200-day moving average (DMA). At the time of writing, as the Asian session begins, the cross-pair exchanges hands at 0.8709, up 0.02%.

EUR/GBP trades above 0.8700 as economic data from both Eurozone and UK paints a gloomy picture

Economic data from the Eurozone (EU) revealed that business conditions continued deteriorating. Manufacturing, Services, and Composite PMIs, announced by S&P Global, remained in recessionary territory, below forecasts and the previous month’s data. That and Germany’s GfK Consumer Confidence plummeting were a headwind for the EUR/GBP.

On the UK front, the labor market is losing steam while business activity deteriorated in October, increasing the odds of a recession. S&P Global/CIPS Manufacturing and Services PMI remained in recessionary territory. Employment data showed the jobs market is cooling, as the economy shed -82K workers, while the unemployment rate stood at 4.2%.

Meanwhile, according to a Reuters poll, expectations for further tightening are fading, with most economists foreseeing the Bank of England (BoE) to keep rates unchanged at 5.25% on November 2.

Ahead of the week, the European Central Bank (ECB) is expected to hold rates unchanged, though it is projected to leave the door open for further hikes if needed.

EUR/GBP Technical Levels