EUR/GBP hovers above 0.8700 with a negative tone after ECB decision


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  • EUR/GBP cross faces challenges as the ECB kept the deposit rate unchanged at 4.0%.
  • BoE’s higher interest rate dampens the UK’s economy amid stubborn inflation.
  • UK’s central bank is expected to maintain the current interest rates at 5.25%.

EUR/GBP struggles to recover losses registered in the previous session, trading around 0.8710 during the European session on Friday. The cross faced pressure after the policy decision by the European Central Bank (ECB). The central bank opted to keep the deposit rate unchanged at 4.0%, citing a worsening economic outlook for the Eurozone as the influencing factor.

Furthermore, ECB President Christine Lagarde is navigating a challenging economic landscape. The delicate balance between a weakening economy and strong inflationary pressures can be quite a juggling act. Keeping an eye on the Middle East crisis and staying data-dependent seems like a prudent approach.

On the flip side, the elevated interest rates set by the Bank of England (BoE) are having a detrimental impact on the United Kingdom's economy, exacerbating the challenges posed by stubborn inflation. Economic data reveals significant contractions across various sectors, with high inflation putting a strain on household budgets.

However, the persistent risks of inflation raise doubts among market participants regarding UK Prime Minister Rishi Sunak's ability to fulfill his promise of reducing headline inflation to 5.4% through the end of the year.

Investors will likely monitor the upcoming BoE interest rate decision scheduled for November 2, with widespread expectations that the BoE will maintain the current interest rates at 5.25%.

EUR/GBP: technical levels to watch

Overview
Today last price 0.8708
Today Daily Change -0.0001
Today Daily Change % -0.01
Today daily open 0.8709
 
Trends
Daily SMA20 0.8672
Daily SMA50 0.8627
Daily SMA100 0.8606
Daily SMA200 0.8695
 
Levels
Previous Daily High 0.8734
Previous Daily Low 0.8692
Previous Weekly High 0.874
Previous Weekly Low 0.8641
Previous Monthly High 0.8706
Previous Monthly Low 0.8524
Daily Fibonacci 38.2% 0.8708
Daily Fibonacci 61.8% 0.8718
Daily Pivot Point S1 0.8689
Daily Pivot Point S2 0.8669
Daily Pivot Point S3 0.8646
Daily Pivot Point R1 0.8732
Daily Pivot Point R2 0.8755
Daily Pivot Point R3 0.8775

 

 

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