EUR/GBP depreciates to near 0.8400 due to political uncertainty in Europe


  • EUR/GBP loses ground due to uncertainty surrounding the upcoming European parliamentary elections.
  • ECB President Christine Lagarde is expected to speak at the 30th Dubrovnik Economic Conference on Friday.
  • UK Consumer Inflation Expectations came in at a 2.8% increase compared to a previous reading of a 3.0% rise.

EUR/GBP continues to depreciate for the second consecutive session, trading around 0.8410 during European hours on Friday. The Euro (EUR) struggles due to uncertainty surrounding the upcoming European parliamentary elections. Investors are awaiting insights from ECB President Christine Lagarde's speech at the 30th Dubrovnik Economic Conference scheduled later in the day.

Political uncertainty in Europe is expected to weigh on the Euro and could further weaken the EUR/GBP cross. The recent European parliamentary elections have highlighted significant divisions within several member states. In France, President Emmanuel Macron's decision to dissolve parliament and call for snap elections follows a defeat by the far-right National Rally, potentially increasing their representation in the country's parliament, as reported by the European Council on Foreign Relations website.

The ECB delivered a 25 basis-point (bps) interest rate cut during its June meeting last week, a move widely expected by market participants. Financial markets have fully priced in one further reduction this year, but economists polled by Reuters last week forecast two more cuts occurring toward the end of 2024.

In the United Kingdom (UK), Consumer Inflation Expectations showed a slight decrease, with expectations for a 2.8% increase over the next 12 months, compared to a previous reading of a 3.0% rise. Traders await the upcoming Bank of England (BoE) monetary policy meeting scheduled for Thursday. It is widely expected that the BoE will maintain interest rates at 5.25%.

Investor attention will primarily be on the number of policymakers likely to support a rate-cut decision. During the May meeting, BoE Deputy Governor Dave Ramsden joined policymaker Swati Dhingra in voting for a 25 basis-point (bps) reduction in interest rates to 5.0%.

EuroNews reported BoE Governor Andrew Bailey acknowledged significant progress in inflation declining to 2%, but emphasized, "We are not yet at a point where we can cut the base rate."

EUR/GBP

Overview
Today last price 0.8406
Today Daily Change -0.0007
Today Daily Change % -0.08
Today daily open 0.8413
 
Trends
Daily SMA20 0.85
Daily SMA50 0.8545
Daily SMA100 0.8547
Daily SMA200 0.8598
 
Levels
Previous Daily High 0.8458
Previous Daily Low 0.8413
Previous Weekly High 0.8536
Previous Weekly Low 0.8489
Previous Monthly High 0.8621
Previous Monthly Low 0.8484
Daily Fibonacci 38.2% 0.843
Daily Fibonacci 61.8% 0.8441
Daily Pivot Point S1 0.8398
Daily Pivot Point S2 0.8383
Daily Pivot Point S3 0.8353
Daily Pivot Point R1 0.8443
Daily Pivot Point R2 0.8473
Daily Pivot Point R3 0.8488

 

 

Share: Feed news

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.

Trading Pro
Read review
Pepperstone
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review
Trading Pro
Read review
Pepperstone
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review

Recommended content


Recommended content

Editors’ Picks

EUR/USD corrects sharply toward 1.0950 ahead of US NFP, Powell

EUR/USD corrects sharply toward 1.0950 ahead of US NFP, Powell

EUR/USD is extending its correction toward 1.0950 in the European session on Friday. The US Dollar has come up for air after the trade war and recession fears-led sell-off, weighing on the pair. Traders look to the US NFP report and Fed Chair Powell's speech for fresh directives.  

EUR/USD News
GBP/USD remains heavy near 1.3000, US NFP data awaited

GBP/USD remains heavy near 1.3000, US NFP data awaited

GBP/USD is battling 1.3000, under heavy selling pressure in European trading on Friday. Traders resort to profit-taking on their US Dollar short positiions, re-adjusting ahead of the critical US Nonfarm Payrolls data and Fed Chair Powell speech. 

GBP/USD News
Gold price sticks to negative bias around $3,100; bears seem non-committed ahead of US NFP report

Gold price sticks to negative bias around $3,100; bears seem non-committed ahead of US NFP report

Gold price meets with a fresh supply on Friday, though the downside potential seems limited. Trump’s tariffs-inspired risk-off mood might continue to act as a tailwind for the precious metal. Fed rate cut bets weigh on the USD and also contribute to limiting losses for the XAU/USD pair.

Gold News
Nonfarm Payrolls forecast: US jobs growth set to slow in March amid growing worries over US tariffs

Nonfarm Payrolls forecast: US jobs growth set to slow in March amid growing worries over US tariffs

Nonfarm Payrolls are forecast to rise by 135K in March, following a 151K gain reported in February. The United States Bureau of Labor Statistics will release the jobs data on Friday at 12:30 GMT. US labor data could impact the Fed’s interest rate path, potentially affecting the US Dollar's price action.

Read more
Trump’s “Liberation Day” tariffs on the way

Trump’s “Liberation Day” tariffs on the way

United States (US) President Donald Trump’s self-styled “Liberation Day” has finally arrived. After four straight failures to kick off Donald Trump’s “day one” tariffs that were supposed to be implemented when President Trump assumed office 72 days ago, Trump’s team is slated to finally unveil a sweeping, lopsided package of “reciprocal” tariffs. 

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025