EUR/GBP loses ground above 0.8600 ahead of German CPI data

EUR/GBP remains on the defensive near 0.8625, ahead of Eurozone mid-tier data.
The German Unemployment Rate remained flat at 5.9%, as expected.
Traders anticipate that the Bank of England (BoE) will cut rates as soon as May 2024.

Lallalit Srijandorn FXStreet

The EUR/GBP cross finds some support around the weekly low of 0.8610 and hovers around 0.8625 during the early European session on Thursday. The Eurozone HCOB Composite PMI, Services PMI for December, and German Consumer Price Index (CPI) will be released later on Thursday. These figures could trigger the volatility in the cross.

The German Statistics Office revealed on Wednesday that the nation’s Unemployment Change showed that the number of unemployed people increased by 5K from the previous reading of 21K, better than the estimation of 20K. Meanwhile, the German Unemployment Rate remained flat at 5.9% as expected.

On the British Pound front, the UK Manufacturing PMI came in at 46.2 in December versus 46.4 prior, missing the expectation of 46.4, S&P Global showed on Tuesday. Traders increase their bets that the Bank of England (BoE) will be forced to cut rates as soon as May as policymakers switch their focus from high inflation to a stagnant economy. This, in turn, might weigh on the British Pound (GBP) and cap the downside of the EUR/GBP cross.

Market participants will closely monitor the German inflation report for fresh impetus. The German Harmonized Index of Consumer Prices (HICP) for December is estimated to rebound to 3.8% YoY from 2.3% in the previous reading.

EUR/GBP

Overview
Today last price	0.8625
Today Daily Change	0.0001
Today Daily Change %	0.01
Today daily open	0.8624

Trends
Daily SMA20	0.8637
Daily SMA50	0.8666
Daily SMA100	0.8645
Daily SMA200	0.8654

Levels
Previous Daily High	0.8676
Previous Daily Low	0.8617
Previous Weekly High	0.8715
Previous Weekly Low	0.8652
Previous Monthly High	0.8715
Previous Monthly Low	0.8549
Daily Fibonacci 38.2%	0.864
Daily Fibonacci 61.8%	0.8654
Daily Pivot Point S1	0.8602
Daily Pivot Point S2	0.858
Daily Pivot Point S3	0.8543
Daily Pivot Point R1	0.8661
Daily Pivot Point R2	0.8698
Daily Pivot Point R3	0.872

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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