EUR, GBP flows: GBP under pressure after weaker PMIs

European PMIs are on the soft side, although the services sector in the Eurozone held up better than expected with a recovery in France. The UK numbers were more clearly on the weak side, but have less correlation with the official data. However, with the UK retail sales numbers also weaker than expected today, they should help maintain downward pressure on GBP. EUR/GBP has only edged higher, but risks must now be towards a test of the highs of the year at 0.8865. GBP/USD and GBP/JPY may be even more vulnerable, given the risk negative tone.