• GBP on the up as UK data impresses traders.
  • The next data in line will be Retail Sales as traders look to the BoE's net move.

EUR/GBP is trading at 0.8537 at the time of writing, down 0.14% on the day and between a low of 0.8528 and a high of 0.8562. The price is below the prior day's close and has carved out dynamic support and resistance in an hourly time-frame perspective. 

Meanwhile, the pound was the main focus of the cross this week so far. Sterling hit a new 5-week high against the dollar and a 3-week high to the euro on Tuesday, supported by labour market data that showed the total number of payrolled employees in Britain has climbed to pre-pandemic levels.

UK data in focus for EUR/GBP

UK employers added a record 241,000 staff to their payrolls last month. This means the total number of payrolled employees is just above the level they were before the initial COVID-19 lockdown last year. Investors have cheered the prospects for Britain's job market as the government phases out its furlough support programme, which will finish on Sept. 30.

Inflation data was the next catalyst ahead of Retail Sales data. British inflation hit a more than nine-year high last month, lifting prospects that the Bank of England could act sooner to hike rates.

''Consumer prices in Britain rose by 3.2% in annual terms last month. This was the biggest monthly jump in the annual rate in at least 24 years, largely due to a one-off boost reflecting the "Eat Out to Help Out" scheme that pushed down restaurant meal prices last year,'' Reuters reported. 

Economists and the  Bank of England expect inflation to rise sharply this year and hit a peak of 4% which means the central bank could be on course to tighten its monetary policy quicker than the European Central Bank or the US Federal Reserve. A Reuters poll found that investors believed the BoE will raise borrowing costs by the end of 2022.

Eyes on Retail Sales 

The next focus for GBP will be tomorrow’s release of August Retail Sales. 

''This is expected to bounce by 0.8% m/m after the -2.4% m/m plunge registered in July,'' analysts at Rabobank explained. 

''That number prompted speculation that much of the lockdown related pent up demand in the UK has run its course. Tomorrow’s data will likely be key in setting that tone ahead of the September 23 BoE policy meeting.''

EUR/GBP technical analysis

EUR/GBP is on the verge of a downside breakout of the dynamic trendline support following a double top and a 50% mean reversion of the prior bearish impulse. 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD eases to 0.9900 on disappointing German data

EUR/USD eases to 0.9900 on disappointing German data

EUR/USD is paring back gains towards 0.9900 in early European hours, as German Factory Orders disappointed with -2.4% in August vs. -0.7% expected. The US dollar licks its wounds amid a better market mood. Eurozone data and ECB minutes are awaited. 

EUR/USD News

GBP/USD remains pressured towards 1.1300 amid UK rating downgrade

GBP/USD remains pressured towards 1.1300 amid UK rating downgrade

GBP/USD is reversing towards 1.1300, as investors digest Fitch Ratings downgrade to the UK sovereign ratings amid political and economic woes. The pair shrugs off a risk-on market profile and a broadly subdued US dollar. US data next of note. 

GBP/USD News

Gold poised to challenge September highs at $1,735

Gold poised to challenge September highs at $1,735

Gold price is attempting a bounce as US dollar holds lower ground with yields. Market remains upbeat despite a lack of clarity on the Fed rate hike outlook. XAU/USD eyes $1,735 on a sustained break above the 50 DMA barrier.

Gold News

Crypto.com price consolidates, forecasting a 22% rally for CRO holders

Crypto.com price consolidates, forecasting a 22% rally for CRO holders

Crypto.com price seems to have undone its breakout gains seen in the last week of September. This downtrend has morphed into a tight consolidation showing no volatility. 

Read more

Is the recent S&P 500 rally sustainable?

Is the recent S&P 500 rally sustainable?

Can we trust the recent rally? The market just rallied +5.7% in two trading days. Bulls argue that the rebound could push even higher as the start of Q3 earnings season starts up next week.

Read more

Forex MAJORS

Cryptocurrencies

Signatures