EUR/GBP hits session highs at 0.8680 on upbeat Eurozone PMIs, trade deal hopes

• The Euro crawls higher against the Pound after the release of Eurozone and UK preliminary PMIs.
• Eurozone Business activity beat expectations, driven by the services sector's growth.
• Markets awaiting details about the EU-US trade deal and the ECB decision. 

The Euro is posting moderate gains on Thursday, after bouncing from 0.8640 on Wednesday, but remains trapped within the weekly range, with investors awaiting details of a widely expected trade deal with the US, and the outcome of the European Central Bank's meeting.

News reporting that Eurozone and US negotiators might be close to a trade deal has provided some support to the Euro earlier on Thursday. European Commission officials revealed that the agreement would include 15% tariffs on Eurozone imports, with exemptions for automobiles, medical devices, and alcoholic beverages.

Eurozone preliminary PMIs for July beat expectations

In the meantime, data from the Eurozone has been mixed, with Preliminary PMIs showing stronger-than-expected business activity, mainly in the services sector, yet the German GfK Consumer Confidence survey confirms the soft momentum of the bloc's major economy.

In the UK, on the contrary, Preliminary PMI data have disappointed, with the services sector's growth slowing down against expectations, while manufacturing activity improved but well within contraction levels.
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The highlight today is the ECB's monetary policy decision. The bank is widely expected to keep interest rates on hold, but the market will be analysing President Lagarde's speech for clues about the bank's near-term policy.