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
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
