EUR/GBP holds position above 0.8500 ahead of UK, Eurozone PMI data
The post EUR/GBP holds position above 0.8500 ahead of UK, Eurozone PMI data appeared on BitcoinEthereumNews.com.
EUR/GBP moves sideways as traders adopt caution ahead of PMI figures from both economies. ECB officials adopt caution about committing to a rate-cut path due to concerns over inflation rebound. UK’s recent inflation and employment data have strengthened the argument for the BoE maintaining the rate at 5.0% in September. EUR/GBP attempts to retrace its recent losses from the previous session, trading around 0.8520 during Thursday’s Asian hours. The upside of the EUR/GBP cross could be attributed to traders’ expectations of the European Central Bank (ECB) gradually lowering interest rates. However, ECB officials have been cautious about committing to a specific rate-cut schedule due to concerns over inflation rebound. The likelihood of an ECB rate cut was strengthened after Tuesday’s Harmonized Index of Consumer Prices (HICP) data from the European Monetary Union (EMU) showed no month-on-month change for July, as expected. Additionally, the Core HICP decreased by 0.2%, matching the decline observed in June. Traders are now closely watching the Purchasing Managers Index (PMI) reports for the Eurozone and Germany, due to be released on Thursday. In the United Kingdom, recent inflation and employment reports have strengthened the case for the Bank of England (BoE) to maintain the interest rate at 5.0% in its upcoming September meeting. This development may have given a boost to the Pound Sterling (GBP). Furthermore, Rupert Thompson, Chief Economist at IBOSS, indicated that “The BoE is expected to keep rates steady in September, with any potential rate cut likely being delayed until November.” On Thursday, the release of UK PMI data will be pivotal for the British Pound. The Composite PMI is anticipated to rise to 52.9 in August, up from the previous reading of 52.8, reflecting expected growth in both the manufacturing and services sectors. Stronger figures could reinforce the case for the Bank…
Filed under: News - @ August 22, 2024 6:17 am