EURGBP breaks above 0.8800 as Pound weakens
|- Pound under pressure at the beginning of an important week.
- EURGBP approached last week high near 0.8830.
- Consolidation above 0.8830 could open the doors for 0.8900.
The Pound is among the worst performers across the G10 space on Monday. EURGBP broke above 0.8800 and climbed to 0.8813, reaching the highest level since Thursday.
EURGBP gains momentum
The cross remains near the top supported by a weaker Pound across the board. While GBPUSD trades at daily lows under 1.1730, EURUSD is moving toward daily highs above 1.0330.
Economic data from the Eurozone showed an increase in Industrial Production of 0.9% in September, above the 0.5% expected. On Tuesday, employment and GDP data are due.
In the UK, employment data will be reported Tuesday. The unemployment rate is expected to remain steady at 3.5%. On Wednesday, October CPI is due, with the headline expected to rise to 10.7% from 10.1%.
The key event will be the Autumn Budget statement on Thursday. “Markets await Chancellor Hunt’s Autumn Statement on Thursday. Hunt faces a delicate balance of trying to shore up UK policy credibility to reassure markets and the GBP, whilst making spending cuts and revenue enhancements that do not weaken already soft support for the Conservatives even further”, said analysts at Scotiabank.
Technical 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.