The euro rose modestly against the British pound on Tuesday after Germany’s March ZEW economic sentiment index, a survey of financial market experts’ six-month outlook, climbed to 51.6 from 47.1 and beat forecasts of 48.0. EUR/GBP moved to around 0.8540 from 0.8525 in the previous session, though the advance was limited as investors stayed cautious ahead of upcoming central bank meetings, especially the Federal Reserve’s policy decision later this week. The stronger German reading suggests less pessimism around the eurozone’s largest economy and may support expectations that the European Central Bank could delay further rate cuts. Still, analysts said the improvement was not a game-changer for the euro, which remains exposed to energy prices, global trade tensions and geopolitical risks. With the Bank of England also balancing sticky inflation against weak growth, the pair remains sensitive to shifts in relative economic momentum, with traders watching the 0.8500 to 0.8580 range for a near-term directional break.