EUR/GBP clings to daily lows below 0.8550 post-UK Inflation data
|- EUR/GBP edges lower on Thursday in the initial European session.
- Euro remained under pressure on ECB policymakers mixed view, mixed economic data.
- UK inflation data fuels BOE rate hike expectations, consistent Brexit anxiety pressured sterling.
After testing fresh daily gains above 0.8560 in the overnight session, EUR/GBP edges lower on Thursday. The pair confides in less than 10-pips movement with no meaningful tractions.
At the time of writing, EUR/GBP is trading at 0.8534, down 0.01 % for the day.
Mixed economic data and the European Central Bank (ECB) members comments weighed on the performance of the shared currency. In recent economic data, the Eurozone labor cost fell for the first time at 0.1% in June on a yearly basis whereas the Industrial output grew 1.5% in July, much above the market expectations of a 0.6% rise.
Meanwhile, the ECB Executive Board Member Isabel Schnabel said the market is overestimating the coronavirus risk to global growth outlook whereas ECB President Christine Lagarde favours continuous monetary and fiscal aid to support the economic growth.
On the other hand, the British pound gained after the UK inflation jumped to 3.2% in August from 2% in July, and above the market consensus of 2.9%. The higher readings fueled the expectations of a sooner-than-expected stimulus tapering by the Bank of England.
As for now, traders are waiting for the Eurozone Balance of trade to gauge the market sentiment.
EUR/GBP additional levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.