• EUR/GBP bulls take control as markets get set for the US CPI key event. 
  • ECB and BoE sentiment continues to drive the cross. 

EUR/GBP is heading into the last hour of Wall Street on a strong footing ahead of the countdown into US Consumer Price Index which could be a trigger for the US dollar with implications for the euro and the EUR/GBP cross.

Meanwhile, at 0.8442, EUR/GBP is higher by some 0.23% having climbed from a low of 0.8413 and reaching a high of 0.8450 on the day. The euro managed to save face on the back of semi-conflicting central bank chatter. The European Central Bank board member Isabel Schnabel said on Wednesday that the ECB may need to raise interest rates on the back of higher energy prices.

This followed attempts to downplay the hawkishness of the ECB meeting by governor Christine Lagarde at the start of the week. Lagarde argued that any adjustment to monetary policy will be "gradual" and the ECB would remain "data-dependent" while assessing the implications for the medium-term inflation outlook.

Meanwhile deep uncertainty about the future path of the Bank of England’s monetary policy. The Bank of England Chief Economist Huw Pill spoke on Wednesday and said that it was reasonable for central banks to withdraw from providing detailed guidance on the policy outlook as prospects for the economy were not clear cut.

This rhymes with the message from last week's meeting where although the BoE hiked by 0.25bps, the  Governor of The Old Lady, Andrew Bailey, warned markets not to take for granted the BoE was embarking on a long series of rate hikes. nevertheless, money markets are still pricing in a 25 bps rate increase in March and 125 bps by December 2022.

Meanwhile, the US CPI data on Thursday has the potential to move the needle in the forex market. ''If those readings come in hot, it could be the trigger for the next leg higher in U.S. yields and likely push the 10-year above 2% for the first time since August 2019,'' analysts at Brown Brothers Harriman warned. ''Fed tightening expectations would also pick up and likely push the short end of the US curve higher, which would support the dollar.''

On Friday, UK Gross Domestic Product data will be eyed. ''We look for UK GDP to contract 0.8% m/m in December, thus bringing GDP below its pre-COVID level once again,'' analysts at TD Securities explained.

''Manufacturing likely declined 0.3% MoM, while we expect the services sector to contract 0.9% MoM, in part driven by voluntary COVID measures and a substantial amount of people isolating due to the Omicron surge, but also due to a fade in consumer demand.''


Today last price 0.8444
Today Daily Change 0.0017
Today Daily Change % 0.20
Today daily open 0.8427
Daily SMA20 0.8365
Daily SMA50 0.842
Daily SMA100 0.8456
Daily SMA200 0.8514
Previous Daily High 0.8457
Previous Daily Low 0.8413
Previous Weekly High 0.847
Previous Weekly Low 0.8285
Previous Monthly High 0.8423
Previous Monthly Low 0.8305
Daily Fibonacci 38.2% 0.843
Daily Fibonacci 61.8% 0.844
Daily Pivot Point S1 0.8407
Daily Pivot Point S2 0.8388
Daily Pivot Point S3 0.8362
Daily Pivot Point R1 0.8452
Daily Pivot Point R2 0.8477
Daily Pivot Point R3 0.8496



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

AUD/USD dribbles around key support below 0.6900, China PMI, US PCE inflation eyed

AUD/USD dribbles around key support below 0.6900, China PMI, US PCE inflation eyed

AUD/USD holds onto the previous day’s bounce off important support while taking rounds to 0.6870 during Thursday’s inactive early Asian session. In addition to defending the corrective pullback, the Aussie pair also portrays the market’s anxiety ahead of important data from a major customer China.


EUR/USD: Oversold RSI probes bears around 1.0450

EUR/USD: Oversold RSI probes bears around 1.0450

EUR/USD dribbles around a two-week low as oversold RSI conditions challenge further downside during Thursday’s inactive Asian session. That said, the major currency pair takes rounds to 1.0450-40 at the latest.


Gold stays on the way to $1,807 support ahead of US PCE inflation

Gold stays on the way to $1,807 support ahead of US PCE inflation

Gold Price struggles to defend the previous day’s bounce off short-term key support during Thursday’s Asian session. In doing so, the yellow metal remains indecisive around $1,818. The yellow metal dropped to the lowest levels in two weeks the previous day.

Gold News

Polygon's MATIC price signals hard times to come, here's why

Polygon's MATIC price signals hard times to come, here's why
Polygon’s MATIC price signals bears have re-entered the market. If the profit-taking continues, a cataclysmic fall could occur to breach the $0.31 low
Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!