- EUR/GBP stays above 0.8600 ahead of the central banks’ decisions.
- The Euro strengthened on the back of hawkish comments made by ECB President Christine Lagarde.
- BoE is expected to increase interest rates by 25 basis points on Thursday.
- BoE Governor Andrew Bailey indicated to approach the ending of interest rate-hike cycle.
EUR/GBP attempts to extend its gains on the second day, trading higher around 0.8610 during the European session on Monday. The pair might gain strength after the statement made by the European Central Bank’s (ECB) President Christine Lagarde on Friday.
Lagarde stated that ECB policymakers had not considered the possibility of implementing further rate cuts. The ECB’s President also suggested that the central bank’s intention was to maintain interest rates at elevated levels for an extended duration and was ready to increase rates if it was deemed necessary.
Economists at Commerzbank have analyzed the outlook for the Euro (EUR) following the ECB’s rate hike last week. According to their analysis, the central bank's decision to signal the end of rate hikes for the time being was largely in line with market expectations. This move by the ECB, however, comes with a certain level of risk, as it indicates a potentially less hawkish stance on monetary policy.
On the other side, the traders of cross-pair anticipate that the Bank of England (BoE) will raise interest rates by 25 basis points in the upcoming meeting scheduled for Thursday. This potential rate hike by the BoE reflects the central bank's efforts to address inflationary pressures and stabilize the British economy.
However, the BoE Governor Andrew Bailey has indicated that the central bank is getting closer to ending its series of interest rate increases. This statement, coupled with concerns about a potential recession and signs of a cooling UK labor market, may increase pressure on the BoE to pause its rate-hiking cycle.
In the upcoming week, there are significant events scheduled for the Eurozone. The Eurozone Harmonized Index of Consumer Prices (HICP) for August will be published on Tuesday and the preliminary HCOB Composite PMI for September is scheduled to be released on Friday. These datasets may provide insights into inflation trends in the Eurozone bloc, which could provide support for the EUR/GBP traders to place their bets.
EUR/GBP: additional important levels
|Today last price||0.8613|
|Today Daily Change||0.0009|
|Today Daily Change %||0.10|
|Today daily open||0.8604|
|Previous Daily High||0.8616|
|Previous Daily Low||0.8569|
|Previous Weekly High||0.8631|
|Previous Weekly Low||0.8558|
|Previous Monthly High||0.8669|
|Previous Monthly Low||0.8493|
|Daily Fibonacci 38.2%||0.8598|
|Daily Fibonacci 61.8%||0.8587|
|Daily Pivot Point S1||0.8577|
|Daily Pivot Point S2||0.855|
|Daily Pivot Point S3||0.8531|
|Daily Pivot Point R1||0.8624|
|Daily Pivot Point R2||0.8643|
|Daily Pivot Point R3||0.867|
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.