The euro weakened against the pound on Tuesday, with EUR/GBP slipping as robust PMI data from both the Eurozone and the UK canceled each other out, while signals from Iran suggesting a de-escalation of tensions in the Middle East reduced demand for safe-haven currencies, including the euro. Flash PMI figures showed the Eurozone’s composite output index rising to 51.2 in January, its highest level since July, driven by services activity. The UK’s composite PMI came in at 50.3, beating expectations. These strong readings initially provided support to both currencies but, with no clear divergence, left EUR/GBP without a directional catalyst. Iranian officials signaled willingness to reduce regional tensions following exchanges with Western powers, dampening safe-haven appeal for the euro and shifting sentiment risk-on, which benefited the pound more sensitive to global risk appetite. As of the latest session, EUR/GBP trades near 0.8490, down 0.2% on the day. The pair remains range-bound, with support at 0.8450 and resistance at 0.8550. For traders, the lack of economic divergence means geopolitical headlines may continue to drive short-term fluctuations.