GBP Climbs to 1.158 Ahead of ECB Decision on Weak Eurozone Data

Sterling has edged higher to GBP/EUR 1.1577-1.1581 as markets await the ECB policy meeting, supported by resilient UK manufacturing PMI and fading BoE rate-cut bets. The pair had slipped toward 0.8550 in late May after weak UK retail sales and Eurozone growth concerns reinforced expectations of ECB easing versus a steadier BoE. Over the period, banks including Danske, MUFG and Rabobank have maintained medium-term forecasts for further GBP losses, targeting GBP/EUR 1.13 or EUR/GBP 0.89 within 9-12 months amid political and labour-market risks.