• EUR/GBP is juggling around 0.8760 as the focus shifts to BOE interest rate policy.
  • The BOE is bound to hike interest rates despite bleak growth and a weak labor market.
  • The German government is bailing out Uniper to ensure enough gas supply during winter.

The EUR/GBP pair is displaying topsy-turvy moves in a narrow range of 0.8758-0.8767 range as investors are awaiting the announcement of the interest rate decision by the Bank of England (BOE). Earlier, the asset rebounded sharply after dropping to near 0.8724. The confident buying action seems responsive, and the asset will scale higher after overstepping the critical hurdle of 0.8787.

The potential trigger for a decisive break in the cross will be the BOE’s monetary policy. Inflationary pressures surprisingly decline for August after remaining above the double-digit figure despite soaring energy bulls for the UK households. However, the August inflation rate decline doesn’t encourage BOE policymakers to soften their approach. The BOE has to swallow the bitter gulp and announce a rate hike by 50 basis points (bps) despite no support from growth prospects and the labor market.

However, the BOE could not settle the higher price rise index into economic behavior as earnings data is not supportive of offsetting the forced inflated payouts by the households.

Meanwhile, the Eurozone economy is working hard to recover from a deepened energy crisis. The German government has decided to bail out the natural gas importer Uniper to ensure sufficient gas supplies in the winter.

While Russian leader Vladimir Putin has stated that the gas supply will start to Europe if the trading bloc lifts sanctions on Nord Stream pipeline 2, Germany needs to make enough gas inventories to cater to the elevated demand during the winter season. However, the western sanctions on Russia are not expected to get lifted.

EUR/GBP

Overview
Today last price 0.8759
Today Daily Change -0.0005
Today Daily Change % -0.06
Today daily open 0.8764
 
Trends
Daily SMA20 0.8634
Daily SMA50 0.852
Daily SMA100 0.853
Daily SMA200 0.8453
 
Levels
Previous Daily High 0.8783
Previous Daily Low 0.8724
Previous Weekly High 0.8784
Previous Weekly Low 0.8626
Previous Monthly High 0.8653
Previous Monthly Low 0.834
Daily Fibonacci 38.2% 0.8747
Daily Fibonacci 61.8% 0.8761
Daily Pivot Point S1 0.8731
Daily Pivot Point S2 0.8699
Daily Pivot Point S3 0.8673
Daily Pivot Point R1 0.879
Daily Pivot Point R2 0.8816
Daily Pivot Point R3 0.8848

 

  

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