EUR/GBP rebounds from the recent losses near 0.8680

EUR/GBP hovers below the psychological level at 0.8700.
The uncertainty over the BoE's further policy actions put pressure on the Pound Sterling.
ECB is expected to hold further interest rate hikes could weigh on the Euro.

Akhtar Faruqui FXStreet

EUR/GBP trades higher around 0.8680 during the Asian session on Thursday. The uncertainty of the next policy action by the Bank of England (BoE), which, in turn, is seen as a key factor acting as a headwind for the EUR/GBP pair.

The most recent UK consumer inflation figures unveiled on Wednesday revealed that the headline CPI held steady at 6.7% in September, defying expectations for a slight dip to 6.6%. This outcome has fuelled speculations for a potential Bank of England (BoE) rate hike in November.

Earlier this week, the UK Office for National Statistics (ONS) reported a slight moderation in wage growth for the three months leading to August. This development may provide the BoE with room to maintain interest rates at their current level.

The relatively subdued earnings data from the United Kingdom might have exerted downward pressure on the Pound Sterling (GBP), contributing to the overall support on the EUR/GBP pair.

Breaking down the earnings figures, the Average Earnings Excluding Bonus (3Mo/Yr) remained unchanged at 7.8% in August, aligning with expectations. However, the Pay levels Including Bonus for the same quarter decelerated to 8.1%, falling short of the market consensus of 8.3%.

On the Euro docket, the speculations suggesting that additional rate hikes by the European Central Bank (ECB) may not be on the horizon could reinforce the negative outlook for the EUR/GBP pair.

The recent data from Eurostat revealed that the Harmonized Index of Consumer Prices (HICP) in the Eurozone stood at 0.3% in September.

In a statement on Wednesday, European Central Bank (ECB) President Christine Lagarde noted that underlying inflation remains robust, and wage growth continues to maintain historically high levels. These factors contribute to the ongoing narrative surrounding the Euro's performance against the British Pound.

Investors will likely focus on Retail Sales from the United Kingdom and the German Producer Price Index (PPI) on Friday, seeking more cues on economic scenarios in both countries.

EUR/GBP: additional important levels

Overview
Today last price	0.8685
Today Daily Change	0.0006
Today Daily Change %	0.07
Today daily open	0.8679

Trends
Daily SMA20	0.866
Daily SMA50	0.8613
Daily SMA100	0.8599
Daily SMA200	0.8698

Levels
Previous Daily High	0.8688
Previous Daily Low	0.866
Previous Weekly High	0.8665
Previous Weekly Low	0.8616
Previous Monthly High	0.8706
Previous Monthly Low	0.8524
Daily Fibonacci 38.2%	0.8671
Daily Fibonacci 61.8%	0.8678
Daily Pivot Point S1	0.8663
Daily Pivot Point S2	0.8648
Daily Pivot Point S3	0.8636
Daily Pivot Point R1	0.8691
Daily Pivot Point R2	0.8704
Daily Pivot Point R3	0.8719

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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