EUR/GBP floats higher as BoE rate cut bets weigh down Pound Sterling
The post EUR/GBP floats higher as BoE rate cut bets weigh down Pound Sterling appeared on BitcoinEthereumNews.com.
EUR/GBP rose back into familiar highs near 0.8430 on Thursday. Market action is giving the Euro a leg up against the Pound Sterling. Investors are adding into BoE rate cut bets, softening the GBP. EUR/GBP is back into a near-term high around 0.8430 as markets firm up bets of a Bank of England (BoE) rate cut next week. Money markets now see slightly more than 50% odds of at least a quarter-point rate trim when the BoE gathers to deliver its latest rate call one week from now on August 1. Plenty of Euro-centric action still remains in the charts ahead of the BoE’s latest possible rate adjustment; preliminary Pan-European Gross Domestic Product (GDP) figures for Q2 are slated for next Tuesday and expected to backslide to 0.2% from the previous 0.3% QoQ. Next Wednesday sees more pan-EU data with July’s Harmonized Index of Consumer Prices (HICP). EU-wide Core HICP inflation last printed at 2.9% YoY in June, still well above the European Central Bank’s (ECB) 2.0% target range. EUR/GBP technical outlook EUR/GBP is on pace to put in one of its best single-day performances of 2024 on Thursday, in the green by around one-third of one percent, but long-term traders will note that still leaves the pair at the low end of a very deep hole. EUR/GBP fell -3.28% peak-to-trough in 2024, falling to an almost two-year low near 0.8383. Euro bidders will be looking for a three-stage recovery off the back of dual Euro-area economic data showings and a rate cut from the BoE next week, but EUR/GBP remains buried well below the 200-day Exponential Moving Average (EMA) at 0.8545. EUR/GBP hourly chart EUR/GBP daily chart Source: https://www.fxstreet.com/news/eur-gbp-floats-higher-as-boe-rate-cut-bets-weigh-down-pound-sterling-202407251603
Filed under: News - @ July 25, 2024 11:24 pm