Pound to Euro steady as Greenland comments weigh on the Euro

The Pound to Euro rate traded around 1.1547 after the pound refreshed a three-month high while the euro weakened amid renewed US comments on Greenland and lower-than-expected Eurozone PMI revisions.

The Pound to Euro exchange rate moved modestly higher on Tuesday, refreshing a three-month high reached on Monday. The euro came under pressure as markets reassessed recent US comments about Greenland in the wake of US military activity in Venezuela. Eurozone activity data was revised lower, and the UK saw a downgraded services PMI reading, which tempered earlier optimism for the pound. Attention is shifting to upcoming Eurozone inflation data as the next possible market driver. Key developments: - GBP/EUR was reported at 1.15474 (-0.04%) on Tuesday, per ExchangeRates.org.uk. - The euro traded defensively after renewed comments by Donald Trump about Greenland, and following recent US military intervention in Venezuela; markets priced in a geopolitical risk premium. - Eurozone December PMI finalised figures were revised lower, adding pressure on the euro. - UK December services PMI was revised down from a preliminary 52.1 to a final 51.4, showing modest activity and signalling challenges for service firms. - The main near-term catalyst is the Eurozone preliminary CPI for December, which is forecast to show a slight cooling in annual inflation from 2.1% to 2.0%. Summary: Markets registered modest gains for the pound while the euro traded on the defensive amid geopolitical commentary and weaker Eurozone activity data. The upcoming Eurozone CPI release is the primary near-term factor that could influence euro direction. With limited fresh UK data scheduled, further clear drivers for the pound are currently limited.