MUFG Research flags a scope for EUR/GBP correction to the downside over the coming weeks.
"The pound is deriving support from improving cyclical UK momentum. The UK is still benefitting from the lagged re-opening of the economy which trailed other major European economies.
While the euro-zone PMIs fell back sharply in August, the UK PMI continued to improve. The composite PMI rose by a further 3.3 point to 60.3 in August. It poses a challenge to the record long EUR/GBP (implied) positions that have been built up this month," MUFG notes.