EUR/GBP flatlines in 0.8320s, just above multi-year lows as next week’s BoE/ECB meetings eyed


  • EUR/GBP is flat in the 0.8320s as FX markets head into the weekend in a calmer mood.
  • Looking ahead to next week, ECB and BoE policy meetings will dominate the headlines and the price action.

EUR/GBP trades flat on the day in the 0.8320s, just above multi-year lows just above the key 0.8300 level and late-2019/early-2020 lows around 0.8280. The pair has ignored the latest mixed Eurozone GDP numbers, which saw France and Spain both post better than expected QoQ Q4 growth rates of 0.7% and 2.0% respectively, whilst Germany saw a larger than expected QoQ contraction of 0.7%. GDP data aside, the Eurozone data slate has been heavy, with the latest European Commission Business and Consumer sentiment survey coming in a little weaker than expected in January and at its lowest since last April.

Elsewhere, the YoY rate of M3 money supply growth was a tad stronger than expected, whilst Import price growth in Germany slowed significantly more than expected in December. As with the GDP data, other releases were also ignored (hence why EUR/GBP is flat), as FX markets see some pre-weekend calm after a volatile week. On which note, EUR/GBP currently trades roughly 0.5% lower on the week and is currently about 1.2% below Monday’s highs in the 0.8420s, the pair reversing lower as FX market focus switched from risk-off to central bank divergence.

On which note, central banks will be a key theme for EUR/GBP traders next week with the BoE and ECB both announcing policy decisions next Thursday. No policy or guidance changes are expected from the latter, but the BoE is now near-unanimously expected to hike rates by 25bps to 0.5% and kick off a discussion on (or even kickstart) outright quantitative tightening (QT) that is likely to begin with ending reinvestments. Recall that the BoE said last year that when rates reached 0.5%, QT could begin. Many FX strategists expect this divergence to continue to drive EUR/GBP lower in the short-term and are targetting the multi-year lows in the 0.8280 area.

Risk appetite has been choppy and shakey this week and another sharp downturn, perhaps if strong US data triggers further hawkish Fed bets, presents some upside risk to the pair. Other things for investors to watch will be flash Eurozone January Consumer Price Inflation data in the early part of the week and German Factory Orders data on Friday.

EUR/Gbp

Overview
Today last price 0.8324
Today Daily Change -0.0004
Today Daily Change % -0.05
Today daily open 0.8328
 
Trends
Daily SMA20 0.8353
Daily SMA50 0.8428
Daily SMA100 0.8469
Daily SMA200 0.8526
 
Levels
Previous Daily High 0.8358
Previous Daily Low 0.832
Previous Weekly High 0.8379
Previous Weekly Low 0.8305
Previous Monthly High 0.86
Previous Monthly Low 0.8368
Daily Fibonacci 38.2% 0.8335
Daily Fibonacci 61.8% 0.8343
Daily Pivot Point S1 0.8313
Daily Pivot Point S2 0.8298
Daily Pivot Point S3 0.8276
Daily Pivot Point R1 0.835
Daily Pivot Point R2 0.8372
Daily Pivot Point R3 0.8387

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD bulls eye 0.7100 as Aussie politics, RBA’s Kent join cautious optimism

AUD/USD bulls eye 0.7100 as Aussie politics, RBA’s Kent join cautious optimism

AUD/USD grinds higher towards 0.7100 as the market’s firmer sentiment battles political change in Australia, as well as mixed comments from RBA’s Kent, during Monday’s Asian session. Risk catalysts, FOMC Minutes will be important for fresh impulse.

AUD/USD News

EUR/USD: Bullish grind towards 1.0600 stays intact

EUR/USD: Bullish grind towards 1.0600 stays intact

EUR/USD retreats from intraday high within an immediate trend widening pattern. Sustained trading beyond 200-HMA, firmer RSI keeps buyers hopeful. One-week-old ascending trend line adds to the upside filters before the monthly high.

EUR/USD News

Gold bulls approach $1,860 hurdle on firmer sentiment, softer US dollar

Gold bulls approach $1,860 hurdle on firmer sentiment, softer US dollar

Gold picks up bids towards an intraday high as bulls benefit from the downbeat US dollar, as well as a firmer mood, during a quiet Asian session on Monday. The precious metal snapped a four-week downtrend while bouncing off the two-year low at the latest.

Gold News

Three reasons why DOGE price will not be back above $0.17 anytime soon

Three reasons why DOGE price will not be back above $0.17 anytime soon

Dogecoin price is at the cusp of saying goodbye to $0.10 as the price is set to drop another leg lower in the coming week after DOGE price consolidated below that same $0.10. With such a move, losses would sum up to 55% of depreciation.

Read more

Week Ahead on Wall Street: Options expiry to the rescue on Friday but its official, we are in a bear market

Week Ahead on Wall Street: Options expiry to the rescue on Friday but its official, we are in a bear market

Another wild and volatile week which seems to be the tone so far for 2022. Wild swings throughout the week were mirrored on Friday with wild intraday swings. The S&P 500 did manage to slide into a bear market territory on Friday.

Read more

Forex MAJORS

Cryptocurrencies

Signatures