EUR/GBP post modest gains in the week, up almost 1%, eyes 0.8600

EUR/GBP rises 0.22% on weak UK economic data.
UK’s retail sales data drop 2.5% vs 0.4% expected.
The short-term trend is up, however stronger UK economic data, supports the British pound.

Christian Borjon Valencia FXStreet

The EUR/GBP rises for the second day in a row, modestly gain 0.22%, trades around 0.8580. For the second week in a row, recovers some lost ground against the pound.

In the dockets for the Eurozone, the German PPI on the monthly basis came at 1.9% versus an 0.8% foreseen, In regards to the UK, consumer confidence and retail sales were released. The UK’s GfK Consumer confidence dropped to -8 from -7 expected, nevertheless remained around pre-pandemic levels. In regards to retail sales for the month of July, the report disappointed, with a drop of 2.5% in the last month, against the market’s expected 0.4% growth.

For the next week on Monday, PMI figures are released for the UK, French, Germany, and the Eurozone.

EUR/GBP technical outlook

The EUR/GBP trades around 0.8576 in between the 100 and the 50-daily moving averages, while the 200-DMA stands at 0.8710. In the short term, the pair is in an uptrend. Strong resistance lies at the confluence of the 100-DMA and a psychological round level at 0.8600, whereas the July 20 high at 0.8669 is the second resistance, followed by 0.8700. On the other hand, the first support is the 50-DMA at 0.8550, followed by the 0.8500 and then this year low at 0.8450.

RSI is at 60.61, supporting the bullish trend while the Average True Range is 36 flattish.

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

GBP/USD revisits 1.3530; Dollar pushes harder

GBP/USD adds to the weekly correction and recedes toward the 1.3530 zone on Friday. Indeed, Cable faces increasing selling pressure on the back of extra gains in the Greenback, particularly fuelled by Chair Warsh’s speech at the Jackson Hole Symposium and the US NFP Annual Revision (-79K).

EUR/USD breaches below 1.1600, multi-day lows

EUR/USD now accelerates its decline and retreats to seven-day troughs in the sub-1.1600 region at the end of the week. The pair’s pullback comes on the back of the strong rebound in the US Dollar after Chair Warsh delivered a hawkish message in Jackson Hole, while the US NFP Annual Revision came in at -79K.

Gold challenges its 200-day SMA near $4,530

Gold’s decline gathers fresh steam, hitting weekly lows while disputing its critical 200-day SMA near $4,530 per troy ounce. The yellow metal’s increasing weakness comes in response to the generalised upbeat tone in the US Dollar and the widespread rebound in US Treasury yields, as investors continue to reprice a Fed rate hike in September.

Crypto Today: Bitcoin, Ethereum, XRP rally loses steam despite steady ETF inflows

Bitcoin is back below $80,000 at the time of writing on Friday, after a second attempt at breaking resistance between $81,000 and $82,000. Meanwhile, Ethereum and Ripple mirror Bitcoin’s cooling trend, with ETH sliding to $2,500 and XRP falling toward $1.40 support.

Week ahead – RBNZ and BoC decide on rates ahead of all-important US NFP

Dollar rebounds ahead of ISM PMI and NFP data. RBNZ is expected to raise rates; focus to fall on forward guidance. BoC is set to remain on hold; will it raise rates in 2027?

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.