- Annual CPI in UK fell to 1.5% in March.
- Consumer Confidence in euro area deteriorates sharply in April.
- Coming up on Thursday: Manufacturing PMI data from UK and EU.
The EUR/GBP pair closed the first two days of the week in the positive territory and gained more than 100 pips during that period. With the shared currency coming under a renewed selling pressure on Wednesday, the pair lost its traction and dropped below the 0.8800 handle. As of writing, the pair was trading at 0.8780, losing 0.55% on a daily basis.
Earlier in the day, the data published by the UK's Office for National Statistics showed that the annual inflation, as measured by the Consumer Price Index (CPI), edged lower to 1.5% in March from 1.7%. This reading came in line with the market expectation and helped the GBP stay resilient against its peers.
Meanwhile, regarding the coronavirus outbreak, British Foreign Secretary Raab said that the UK was starting to come through the peak and helped the UK's FTSE 100 Index end the day with a gain of more than 2%.
EUR remains on the back foot on Wednesday
On the other hand, ahead of Thursday's critical meeting of EU leaders to establish the European recovery fund, the shared currency is struggling to find demand. Reflecting the broad-based euro weakness, the EUR/USD pair is down 0.47% on the day.
Moreover, the European Commission on Wednesday announced that the Consumer Confidence Index in the euro area slumped to -22.7 in April's preliminary reading from -11.6 in March and missed analysts' estimate of -19.6 by a wide margin.
On Thursday, the IHS Markit's preliminary Manufacturing PMI data for Germany, the UK and the eurozone will be looked upon for fresh impetus. Previewing the UK's PMI data and the potential market reaction, "only in case of figures beating expectations, preferably holding up at March´s levels, the pound has room to rise,” FXStreet analyst Yohay Elam said.
Technical levels to watch for
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 posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.