EUR/GBP edges lower ahead of UK economic data


Share:
  • The EUR/GBP trades at 0.8532 reporting mild losses during Monday's session.
  • Impending release of UK's January CPI and Q4 GDP due on Wednesday and Thursday might exert pressure on GBP.
  • Markets anticipate the BoE to initiate rate cutting cycle later than Fed and ECB.
  • ECB's easing cycle is expected to kick off in April.

In Monday's session, the EUR/GBP traded at a minimal loss at 0.8532. Underpinning the GBP stability is market anticipation of the Bank of England’s (BoE) delayed rate-cut cycle, overshadowing potential imminent UK economic headwinds. Conversely, inflation trends, coupled with easing cycle expectations, add an element of uncertainty for the Euro, potentially favoring EUR/GBP selling momentum.

In line with that, the GBP might face headwinds due to the anticipated release of January Consumer Price Index (CPI) and Q4 Gross Domestic Product (GDP) numbers, with the potential of the latter confirming a technical recession from 2023. However, the GBP has had a robust start to 2024, second only to the USD amongst G10 currencies as market expectations hint at the BoE initiating a rate-cutting cycle later than the Federal Reserve (Fed) and European Central Bank (ECB). On Tuesday, labor market data from January and December will also be looked upon.

For the ECB, markets bet on a 60% probability for a 25 bp rate cut in April and a total easing of 125 bp within the year.

EUR/GBP technical analysis

The Relative Strength Index (RSI) for the EURGBP pair is currently oscillating within the negative territory and the slope has been moderately positive, hinting at a slight shift of momentum from the sellers to the buyers over the recent days.

However, the Moving Average Convergence Divergence (MACD) histogram is printing flat green bars indicating that despite some buying pressure, sellers are still dominant. On the hourly chart, the RSI is also maintaining its position within the negative territory, and the MACD histogram continues to print red bars indicating that in the immediate short term, the sellers are also in control.

In the larger context, the EURGBP maintains its position below the 20, 100, and 200-day Simple Moving Averages (SMAs), reinforcing the dominant bearish outlook.

EUR/GBP daily chart

 

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

AUD/USD aims higher amid upbeat mood, mixed US data

AUD/USD aims higher amid upbeat mood, mixed US data

The Aussie Dollar registers minuscule gains against the US Dollar as Friday’s Asia session begins. The pair remains capped on the upside despite hitting a new month high at 0.6595, as a key technical resistance level that acted like a magnet drove the exchange rate toward the 0.6550s area.

AUD/USD News

EUR/USD now retargets the 1.0900 barrier

EUR/USD now retargets the 1.0900 barrier

EUR/USD printed humble gains around the 1.0820 zone following an unsuccessful attempt to revisit or surpass the 1.0900 mark earlier in the session, always amidst further indecisive price action in the Greenback.

EUR/USD News

Gold slides on rising US yields as data portrays solid economy, delaying Fed rate cuts

Gold slides on rising US yields as data portrays solid economy, delaying Fed rate cuts

Gold price prints modest losses on Thursday after economic data from the United States portrays the US economy as solid based on strong employment figures. The XAU/USD trades within the $2,020-$2,024 area, down by 0.06%.

Gold News

Bitcoin price breakdown possible as European Central Bank says BTC fair value is still zero

Bitcoin price breakdown possible as European Central Bank says BTC fair value is still zero

Bitcoin price’s horizontal consolidation continues to extend, but the support level is wearing thin as the days go by. As the current state of uncertainty continues, it is imperative to remember that markets tend not to wait so long.

Read more

Big tech rises on a promising AI future

Big tech rises on a promising AI future

The S&P 500 surged to an all-time high on Thursday following Nvidia's much stronger-than-expected quarterly results, which buoyed the broader tech sector. Nvidia's stock soared more than 14.5% to reach an all-time high after the company reported a remarkable 265% year-over-year increase in total revenue.

Read more

Forex MAJORS

Cryptocurrencies

Signatures