EUR/GBP pares gains towards 0.8600 ahead of ECB Economic Bulletin

EUR/GBP edges lower to 0.8601 on Thursday.
ECB’s de Guindos said the eurozone may have been in recession last quarter and prospects in the near term remain weak.
Bank of England (BoE) Governor Bailey highlighted that it’s important to curb inflation towards its 2% target.

Lallalit Srijandorn FXStreet

The EUR/GBP cross snaps the two-day winning streak during the early European trading hours on Thursday. The cross hovers around the 0.8600 mark after retreating from the weekly high of 0.8620.

The eurozone may have been in recession last quarter, and prospects in the near term remain weak, ECB Vice President Luis de Guindos said on Wednesday. Additionally, ECB’s member Isabel Schnabel said the central bank is on the right track to curb inflation while mentioning geopolitical tensions as one of the upside risks to inflation. ECB policymaker Mario Centeno said that the central bank will cut its key interest rates sooner than it recently thought and should not wait until May to make a decision.

The markets anticipate that the ECB will cut rates this year, with the first move beginning in March or April. That being said, the pricing of aggressive future rate cuts by the ECB compared to the Bank of England's (BoE) should cap the EUR/GBP’s upside.

On the British Pound front, the Bank of England (BoE) Governor Andrew Bailey said on Wednesday that it’s important to curb inflation towards its 2% target and further stated that the UK hasn’t witnessed a rise in unemployment. Bailey claimed that household income has lately increased, which has helped to ease the effect of higher interest rates.

The Industrial Output from Spain and Italy and Economic Bulletin will be due on Thursday. On Friday, traders will monitor UK Manufacturing Production, Industrial Production, and monthly Gross Domestic Product (GBP) for November. ECB Philip Lane is set to speak on Friday. Market players will take cues from the data and find trading opportunities around the EUR/GBP cross.

EUR/GBP

Overview
Today last price	0.8602
Today Daily Change	-0.0009
Today Daily Change %	-0.10
Today daily open	0.8611

Trends
Daily SMA20	0.8642
Daily SMA50	0.8656
Daily SMA100	0.8648
Daily SMA200	0.865

Levels
Previous Daily High	0.8621
Previous Daily Low	0.8596
Previous Weekly High	0.8683
Previous Weekly Low	0.86
Previous Monthly High	0.8715
Previous Monthly Low	0.8549
Daily Fibonacci 38.2%	0.8611
Daily Fibonacci 61.8%	0.8605
Daily Pivot Point S1	0.8598
Daily Pivot Point S2	0.8584
Daily Pivot Point S3	0.8572
Daily Pivot Point R1	0.8623
Daily Pivot Point R2	0.8634
Daily Pivot Point R3	0.8648

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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