• EUR/GBP trades in negative territory near 0.8485 in Friday’s early European session. 
• The preliminary UK August PMI data was better than expected, pushing back the expectation of a BoE rate cut.
• Investors expect two more rate cuts from the European Central Bank (ECB) this year. 

The EUR/GBP cross extends its decline near 0.8485 during the early European trading hours on Friday. The lower bets that the Bank of England (BoE) will cut the interest rate in September after the upbeat Purchasing Managers' Index (PMI) reports provide some support to the Pound Sterling (GBP) and drag the cross lower. Later on Friday, the BoE Governor Andrew Bailey’s speech will be closely watched. 

Business activity in the UK showed its strongest growth in four months alongside cooling price pressures, according to a survey on Thursday. S&P Global’s Composite Purchasing Managers’ Index (PMI) rose to 53.4 in August from 52.8 in the previous month. The figure was slightly higher than the expectation of 52.9. This encouraging report scaled back investors’ bets on a BoE interest rate cut next month, which has boosted the GBP against the Euro (EUR). Financial markets are now pricing in less than 30% possibility of a BoE September rate cut after Thursday's PMI data.