Eur/Gbp steady near 0.8350 as markets eye eurozone inflation data
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The EUR/GBP pair trades flat near 0.8355 during early European trading on Tuesday as investors await the Eurozone Harmonized Index of Consumer Prices (HICP) data for October. Dovish signals from European Central Bank (ECB) officials weigh on the Euro, while a weaker-than-expected UK GDP figure adds downside pressure to the Pound Sterling (GBP).
Ecb dovishness weighs on euro
Rising expectations for further ECB rate cuts have pressured the Euro. ECB Governing Council member Boris Vujcic highlighted on Monday that risks of undershooting the 2% inflation target have increased. ECB policymaker Yannis Stournaras further reinforced market sentiment, suggesting that a 25-basis-point rate cut in December is nearly certain.
The Euro’s outlook hinges on Eurozone October HICP inflation data, which will provide fresh insights into inflationary pressures. A hotter-than-expected reading could dampen expectations for aggressive ECB rate cuts, offering potential relief for the shared currency.
Weak uk gdp limits pound upside
The UK’s GDP contracted by 0.1% MoM in September, below the anticipated 0.2% growth. This weak performance raises concerns about the economic outlook, although the Bank of England (BoE) appears unlikely to pursue back-to-back rate cuts in December.
Suren Thiru, economics director at the ICAEW, noted that inflation concerns and global risks could prevent the BoE from cutting rates further at its December meeting. The upcoming release of the UK Consumer Price Index (CPI) data on Wednesday could shape market expectations around the BoE's policy trajectory.
Technical analysis: key levels to watch
Support Levels: Immediate support lies near 0.8320, with a break below this level exposing the pair to 0.8300.
Resistance Levels: On the upside, resistance is seen at 0.8375, followed by 0.8400. A sustained break above 0.8400 could signal a bullish reversal for the cross.
EUR/GBP remains steady as markets focus on upcoming Eurozone inflation data and UK CPI figures. While dovish ECB sentiment weighs on the Euro, weaker UK GDP growth limits the Pound's upside potential. Traders should monitor inflation data from both regions for clearer directional cues. --
Ecb dovishness weighs on euro
Rising expectations for further ECB rate cuts have pressured the Euro. ECB Governing Council member Boris Vujcic highlighted on Monday that risks of undershooting the 2% inflation target have increased. ECB policymaker Yannis Stournaras further reinforced market sentiment, suggesting that a 25-basis-point rate cut in December is nearly certain.
The Euro’s outlook hinges on Eurozone October HICP inflation data, which will provide fresh insights into inflationary pressures. A hotter-than-expected reading could dampen expectations for aggressive ECB rate cuts, offering potential relief for the shared currency.
Weak uk gdp limits pound upside
The UK’s GDP contracted by 0.1% MoM in September, below the anticipated 0.2% growth. This weak performance raises concerns about the economic outlook, although the Bank of England (BoE) appears unlikely to pursue back-to-back rate cuts in December.
Suren Thiru, economics director at the ICAEW, noted that inflation concerns and global risks could prevent the BoE from cutting rates further at its December meeting. The upcoming release of the UK Consumer Price Index (CPI) data on Wednesday could shape market expectations around the BoE's policy trajectory.
Technical analysis: key levels to watch
Support Levels: Immediate support lies near 0.8320, with a break below this level exposing the pair to 0.8300.
Resistance Levels: On the upside, resistance is seen at 0.8375, followed by 0.8400. A sustained break above 0.8400 could signal a bullish reversal for the cross.
EUR/GBP remains steady as markets focus on upcoming Eurozone inflation data and UK CPI figures. While dovish ECB sentiment weighs on the Euro, weaker UK GDP growth limits the Pound's upside potential. Traders should monitor inflation data from both regions for clearer directional cues. --