- The Euro is steeply off its bids against the Pound Sterling, down 0.5%.
- The GBP took a leg higher after several hawkish comments from BoE policymakers.
- A thin Wednesday calendar gives way to Thursday's double-header EU & UK PMI readings.
The EUR/GBP is down half a percent following a Pound Sterling (GBP) rebound fueled by unexpectedly hawkish comments from Bank of England (BoE) policymakers early Tuesday during the UK's Monetary Policy Report Hearings.
The Euro (EUR) got knocked back towards the 0.8700 handle and is trading into the low end with little recovery heading into Wednesday's market session.
BoE says tighter policy might be needed to combat inflation
Several policymakers from the BoE testified in front of the UK Parliament's Treasury Committee early Tuesday, striking a notably hawkish tone on interest rates as sticky inflation and elevated inflation expectations continue to plague the UK's central bank.
BoE’s Ramsden: I would not rule out having to raise bank rate further in the future
Several BoE policymakers testified before Parliament, and the overall tone was notably hawkish, with the BoE appearing unified in their insistence that ongoing policy tightness will be required to combat ongoing, persistent inflation in the UK.
BoE’s Mann: Prospects for more persistent inflation imply a need for tighter monetary policy
Policymakers also noted that inflation pressures are expected to increase sometime in 2024, and that too much focus on current headline inflation figures is a mistake.
BoE’s Haskel: Fall in headline CPI not a good guide to inflation trend
Wednesday sees a limited economic calendar outside of EU Consumer Confidence for November, forecast to tick upwards from -17.9 to -17.6.
Investors will be focusing heavily on Thursday's dual Purchasing Managers' Index (PMI) reports, due for both the EU and the UK.
The EU's HCOB Composite PMI for November is expected to see a slight improvement from 46.5 to 46.9, while the UK's S&P Global/CIPS Composite PMI is seen holding steady at 48.7.
The UK's steady reading forecast could come under threat if the Manufacturing component of the PMI fails to tick upwards from 44.8 to 45.0 as markets are currently forecasting.
Euro price today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the weakest against the Pound Sterling.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.31% | -0.22% | -0.19% | 0.09% | 0.02% | -0.18% | -0.08% | |
| EUR | -0.31% | -0.51% | -0.49% | -0.24% | -0.29% | -0.49% | -0.37% | |
| GBP | 0.20% | 0.51% | 0.02% | 0.28% | 0.22% | 0.02% | 0.13% | |
| CAD | 0.19% | 0.49% | -0.02% | 0.26% | 0.20% | 0.00% | 0.12% | |
| AUD | -0.09% | 0.24% | -0.28% | -0.25% | -0.06% | -0.26% | -0.12% | |
| JPY | -0.03% | 0.30% | -0.22% | -0.22% | 0.06% | -0.25% | -0.09% | |
| NZD | 0.19% | 0.49% | -0.02% | 0.00% | 0.26% | 0.15% | 0.11% | |
| CHF | 0.07% | 0.38% | -0.14% | -0.11% | 0.15% | 0.10% | -0.11% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
EUR/GBP Technical Outlook
The Euro's backslide has sent the EUR/GBP tumbling well past the 200-hour Simple Moving Average (SMA) as the pair fumbles recent highs to slump back into familiar low points that have plagued the pair for most of November and October.
On the daily candlesticks the pair is pulling back towards the 200-day SMA, though buyers will be tempted by the 50- and 200-day SMA bullish crossover forming on the charts. Technical support from the crossover zone near 0.8680 could provide lift for the pair, while shortsellers will be targeting the last swing low into 0.8650.
EUR/GBP Hourly Chart
EUR/GBP Daily Chart
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
AUD/USD defends 0.6600 after strong China's PMI, RBA in focus
AUD/USD is defending 0.6600 after China's Caixin General Services PMI beat estimates with 51.5 in November. Investors await the Reserve Bank of Australia policy decision on Tuesday. The RBA is set to hold the interest rate at 4.35% amid cooling inflation.
EUR/USD posts modest gains below the mid-1.0800, US ISM PMI eyed
The EUR/USD pair snaps the four-day losing steaks during the Asian trading hours on Tuesday. That being said, the renewed US Dollar lends some support to the pair. The major pair trades around 1.0840, gaining 0.05% for the day.
Gold hovers around $2,030, US Services PMI eyed
Gold edges lower to $2,030 during the early Asian session on Tuesday. Meanwhile, the US Dollar Index rose to 103.60 and the Treasury yields edge higher, with the 10-year yield recovering from 4.24% to 4.32%. XAU/USD price is trading around $2,030, up 0.12% on the day.
Nayib Bukele demands apologies as Bitcoin grows bigger than Visa, Tesla and Bank of America
Bitcoin price noted stellar growth this past year, rising by more than 150% and hitting $42,000 in the past 24 hours. This growth has made Bitcoin the tenth biggest asset in the entire world, imbuing confidence in BTC enthusiasts, including the president of El Salvador, which is evidenced by his recent tweet.
RBA Interest Rate Decision Preview: Hold expected as central bank could leave door ajar for more hikes ahead
The Reserve Bank of Australia is set to pause its tightening cycle once again, leaving the Official Cash Rate (OCR) unchanged at a 12-year high of 4.35% following the conclusion of its December monetary policy meeting on Tuesday. The decision will be announced at 03:30 GMT.