The Euro is rising against the British Pound, awaiting economic data

The Euro is rising against the British Pound, awaiting economic data

The forex euro rose against the British pound for the fourth day in a row after more optimistic calls from European Central Bank policymakers, reducing recession fears in the bloc and amid growing concerns about the outlook for the British economy.

Latvian ECB policymaker Gediminas Simkus is the latest Governing Council member to support a 50 basis point rate hike at the next meeting and added that the ECB should slow the pace of rate hikes as wage pressures continue to mount.

His comments follow yesterday’s Eurozone PMI data, which showed business activity unexpectedly returning to growth. The Composite PMI rose to 50.7.

German IFO business climate data is expected and should reinforce the view that expectations improve to 90.2 from 88.6.

Meanwhile, the British economy appears to be deteriorating after the Office for Budget Responsibility warned that the UK’s growth outlook has deteriorated further and that government borrowing reached £27.4 billion in December, a record high.

Today’s PPI showed factory gate inflation cooling more than expected to 12.4% from 13%.

What is the future for EUR/GBP?

the husband EUR/GBP It bounced from the 50-day moving average at 0.8720 and extended its gains, breaking above key levels. Successful defense of the SMA-50 and a bullish RSI keep the bulls hoping for more upside.

The bulls may look to rise above 0.8895, the 2023 high, to extend gains towards 0.9, the psychological level.

Source: Tradingview, Stone X

On the other hand, the bears could look for a break below 0.88, which is the support of the rising trend line, which could open the door to 0.8770, the low of January 6, before revealing 0.8720, the 50-day simple moving average. . A break below creates a lower low here.

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By Fiona Cincotta, FOREX.com » Official site

Forex.com fomc

Not giving an opinionThe information and opinions contained in this report are provided for general information only and do not constitute an offer or solicitation to buy or sell foreign exchange contracts or CFDs. Although the information contained herein has been obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness, and accepts no liability for any direct, indirect or consequential damages that may result from the fact that anyone relies on this information .

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