- EUR/GBP finds interim support near 0.8350 after the release of the ECB Monetary Policy Meeting Accounts.
- The ECB is expected to cut its borrowing rates further by 50 bps in the remainder of the year.
- Investors await the UK monthly GDP and the factory data to project the next move in the Pound Sterling.
The EUR/GBP pair discovers temporary support near 0.8350 in Thursday’s early North American session. The cross finds buying interest after the release of the European Central Bank (ECB) Monetary Policy Meeting Accounts for the September meeting. The minutes showed that policymakers expect inflation in Eurozone to rise again in the latter part of the year.
ECB accounts also indicated that inflation is on track to return to the bank’s target of 2% but refrained from announcing a victory over it.
However, the outlook of the Euro (EUR) is expected to remain weak as a decline in the flash Eurozone Harmonized of Consumer Prices (HICP) data for September to 1.8% and deepening risks to economic growth have prompted expectations of more rate cuts. For the remaining year, traders expect the ECB to cut interest rates further by 50 basis points (bps), suggesting that the ECB will reduce its Deposit Facility Rate by 25 bps next week and again in December.
In the September meeting, officials noted a faster-than-projected slowdown in the wage growth. The board expects the wage growth to soften even faster in the next year. This would keep price pressures under control and prompt expectation of more interest rate cuts going ahead.
In the United Kingdom (UK), the Pound Sterling (GBP) will be influenced by the monthly Gross Domestic Product (GDP) and the factory data for August, which will be published on Friday. Economists expect the UK economy to have grown by 0.2% after remaining flat in July.
For the Bank of England’s (BoE) interest rate outlook, traders expect the bank to cut interest rates for once in any of the two policy meetings remaining this year by 25 bps.
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.
Recommended content
Editors’ Picks
AUD/USD depreciates due to market caution ahead of US NFP
The Australian Dollar remains subdued against the US Dollar for the second consecutive day on Friday. The AUD/USD pair faces modest headwinds as the USD steadies ahead of the upcoming Nonfarm Payrolls report in the North American session.
USD/JPY: Japanese Yen stands firm near a multi-month high against a broadly weaker USD
The Japanese Yen continues to be underpinned by increasing bets for more BoJ rate hikes. Trade tariff jitters and the risk-off mood further seem to underpin demand for the safe-haven JPY. Expectations for further policy easing by the Fed weigh on the USD and the USD/JPY pair.
Gold price remains depressed ahead of US NFP; trade jitters to limit losses
Gold price trades with negative bias for the second straight day, though a combination of factors continues to act as a tailwind ahead of the crucial US NFP report later this Friday. Rising trade tensions continue to weigh on investors' sentiment.
Crypto AI Tokens: Why FET, NEAR and RNDR could outperform BTC after White House Summit
The White House Crypto Summit is scheduled to hold on Friday. Rather than double-down on BTC, sector-wide price trends show that investors are leaning towards Crypto AI altcoins.
Make Europe great again? Germany’s fiscal shift is redefining the European investment playbook
For years, Europe has been synonymous with slow growth, fiscal austerity, and an overreliance on monetary policy to keep its economic engine running. But a major shift is now underway. Germany, long the poster child of fiscal discipline, is cracking open the purse strings, and the ripple effects could be huge.
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.