EUR/GBP slides below 0.8640 for Monday
|- EUR/GBP falls into familiar lows near 0.8630 as Euro slips a new bottom into near-term consolidation.
- The BoE's Mann shows her hawkish feathers during a speech in Dallas.
- EU Sentix Investors Confidence fails to inspire Euro bull run, ECB Lagarde speech in the barrel for Tuesday.
The EUR/GBP fell off recent consolidation to etch in a new October low near 0.8631, and the pair is pinned into the low end heading into the Tuesday trading session.
The European Sentix Investor Confidence reading for October couldn't prop up the Euro (EUR) meaningfully, despite a better-than-expected print of -21.9, a slight downtick from the previous read of -21.5 but significantly better than the market forecast of -24.
On the UK side, the Bank of England (BoE) policymaker and Monetary Policy Committee (MPC) member Catherine Mann made a hawkish showing at an event in Dallas on Monday. Mann noted that central banks need to be more aggressive in the face of inflation, because policy measures need to not only overcome inflation, but "drift" in inflation expectations that develop over time.
Mann remains concerned about how deeply-embedded inflation has become, and that too-little moves from the BoE could mean future policy mechanism adjustments would have a limited effect.
Tuesday sees a speech from European Central Bank (ECB) President Christine Lagarde who will be delivering talking points at the International Monetary Fund's (IMF) latest annual meeting, currently being hosted in Morocco.
On Wednesday, it's UK production day, with Industrial and Manufacturing Production on the docket, alongside Gross Domestic Product (GDP) for the third quarter and Trade Balance figures.
Wednesday will also see speeches from the ECB's Elderson and Panetta, followed by the ECB's latest meeting minutes, to be published at 11:30 GMT.
EUR/GBP Technical Outlook
The Euro is down 0.83% against the Pound Sterling from September's peak of 0.8706, constrained by technical resistance from the 200-day Simple Moving Average near the 0.8700 handle, while the 50-day SMA rests near 0.8610, with chart action sandwiched in the middle.
Technical indicators are turning softly bearish, with the Moving Average Convergence-Divergence (MCAD) indicator flashing a bearish rollover of the fast and slow indicator lines from overbought conditions.
EUR/GBP Daily Chart
EUR/GBP Technical Levels
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