EUR/GBP rises to near 0.8570 amid expectations of rate cuts by major central banks


  • EUR/GBP continues its winning streak amid possible rate cuts by major central banks.
  • The Pound Sterling faces challenges as the BoE is expected to initiate rate cuts in June, with odds standing at 66%.
  • ECB's Pablo Hernandez stated that recent inflation data aligns with the central bank's mandate of achieving its inflation objective.

EUR/GBP continues its winning streak that began on March 29, climbing to near 0.8570 during the European trading hours on Thursday. The easing of global inflationary pressures has led to speculation about potential interest rate cuts by central banks.

Money market futures traders are anticipating a 25 basis point rate cut by the Bank of England (BoE) in June, with odds currently standing at 66%. On the other side, the Eurozone annual rate of inflation declined more than expected in March, prompting speculation that the European Central Bank (ECB) may cut interest rates in June.

On Wednesday, the Eurozone Harmonized Index of Consumer Prices (HICP) for March was reported at a year-over-year rate of 2.4%, missing the market estimation of an unchanged 2.6% rise in the reported period.

BoE Governor Andrew Bailey has recently commented that, with further encouraging signs indicating a cooling inflation trend, the UK economy is moving towards a point where the central bank could consider interest rate cuts. ECB policymaker Pablo Hernandez de Cos stated on Wednesday that he is not explicitly providing forecasts on future monetary policy. However, he mentioned that recent inflation data is in line with the central bank's mandate of achieving its inflation objective.

Pablo Hernandez also mentioned that the ECB could begin cutting interest rates in June due to a sustained slowdown in inflation across the bloc. Additionally, ECB policymaker Robert Holzmann remarked that the central bank might initiate interest rate cuts in June, as inflation could decline more rapidly than initially anticipated.

EUR/GBP

Overview
Today last price 0.8574
Today Daily Change 0.0010
Today Daily Change % 0.12
Today daily open 0.8564
 
Trends
Daily SMA20 0.8552
Daily SMA50 0.8548
Daily SMA100 0.8589
Daily SMA200 0.8607
 
Levels
Previous Daily High 0.8582
Previous Daily Low 0.8557
Previous Weekly High 0.8593
Previous Weekly Low 0.853
Previous Monthly High 0.8602
Previous Monthly Low 0.8504
Daily Fibonacci 38.2% 0.8573
Daily Fibonacci 61.8% 0.8567
Daily Pivot Point S1 0.8553
Daily Pivot Point S2 0.8543
Daily Pivot Point S3 0.8528
Daily Pivot Point R1 0.8579
Daily Pivot Point R2 0.8593
Daily Pivot Point R3 0.8604

 

 

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