• EUR/GBP continues to gain due to the positive sentiment surrounding the BoE to manage the impact of higher interest rates.
• Investors seek further cues on the ECB’s stance on addressing economic challenges.
• Eurozone’s PMI and Unemployment Rate remained unchanged.
• UK S&P Global/CIPS Manufacturing PMI for September surpassed the expected reading in September.

EUR/GBP continues to move on the upward path for the third successive day, trading higher around 0.8670 during the European trading hours on Monday. This upward movement is supported by investor expectations of an improvement in the United Kingdom's (UK) ability to navigate the consequences of higher interest rates set by the Bank of England (BoE).

The BoE, after raising rates to 5.25%, has temporarily halted its policy-tightening measures to protect the economy from further slowdown. The anticipation of the UK's learning curve in managing the impact of elevated interest rates is contributing to the positive momentum in the EUR/GBP pair.

Anticipate heightened volatility in the Pound Sterling (GBP) as UK Finance Minister Jeremy Hunt is expected to announce an increase in the minimum wage while dismissing tax cuts at the annual Conservative Party conference.

UK S&P Global/CIPS Manufacturing PMI for September improved to 44.3 from the previous 44.2, which was expected to remain consistent.

On the Euro side, speculation prevails in the market about a potential stalemate in policy changes at the European Central Bank (ECB). This is despite inflation levels exceeding the bank's objective and increasing concerns about the possibility of a recession.

Traders and investors are closely monitoring any indications or statements from the ECB for insights into the central bank's stance on addressing current economic challenges.

Germany’s HCOB Manufacturing PMI reduced to 39.6 from the previous reading of 39.8, which was expected to remain unchanged in September.

The Eurozone’s PMI and Unemployment Rate remained unchanged at 43.4 and 6.4% respectively, as anticipated.

The upcoming week promises a series of speeches from European Central Bank (ECB) officials, with particular attention likely focused on President Christine Lagarde's address at a monetary policy conference scheduled for Wednesday