EUR/GBP gains ground to near 0.8650 ahead of BoE's Mann speech

• EUR/GBP gathers strength around 0.8645 in Tuesday's early European session. 
• An ECB official said there's no need for more cuts unless new risks appear.
• BoE's Mann speech will be in the spotlight later on Tuesday. 

The EUR/GBP cross gains momentum to near 0.8645 during the early European session on Tuesday. The Euro (EUR) strengthens against the Pound Sterling (GBP) as the European Central Bank (ECB) signals a pause in monetary easing. The Bank of England (BoE) Catherine Mann is set to speak later on Tuesday. 

ECB policymakers said the Eurozone economy can handle a pause in cuts, adding that the central bank sees no reason to lower interest rates again right now, even after inflation in the euro area finally hit the 2% target. The ECB said the current inflation level is "in a good place" and warned against cutting rates for no clear reason. 

Additionally, ECB President Christine Lagarde said in July that the central bank was "in a good place" as it left its key rate at 2%, bringing a year-long cutting cycle to an end and leading investors to bet on a prolonged pause. The cautious tone from the ECB might support the shared currency in the near term. 

The upbeat UK preliminary S&P Global Purchasing Managers' Index (PMI) data for August and hot UK July inflation data diminish the odds of the Bank of England (BoE) rate cuts this year. This, in turn, might underline the GBP and cap the upside for the cross. The BoE cut the interest rates from 4.25% to 4.0% earlier this month as the UK central bank resumed what it describes as a "gradual and careful" approach to monetary easing. A quarter-point cut is not fully priced in until March 2026.