Euro edges up against British Pound but remains within recent ranges

EUR/GBP remains stalled near 0.8550 after bouncing up from lows near 0.8530.
The Pound keeps struggling, weighed by Thursday's weak Industrial Production report.
Rabobank analysts see BoE monetary policy and fiscal concerns weighing on the Pound in the mid-term.

Guillermo Alcala FXStreet

The Euro (EUR) is trading practically flat against the British Pound (GBP) on Friday, holding moderate gains after bouncing from three-week lows on Thursday. The EUR/GBP pair, however, is struggling to find significant acceptance above 0.8550, and remains on track for a 0.2% weekly loss.

Eurozone data released on Friday revealed that German wholesale prices bounced 0.2% in July, following a 0.7 contraction in June, below the 0.4% increase forecasted by market analysts. The Year-on-year rate has accelerated to 5.3% from 4.9% in June. The impact on the Euro, however, has been negligible.

The Sterling retreated against its main peers on Thursday, as data released by the UK National Statistics Office revealed that the Gross Domestic Product (GDP) growth slowed in Q2, in line with market forecasts, and Industrial Production contracted unexpectedly in June amid a sharp drop in manufacturing output.

Looking ahead, Strategists at Rabobank see the Bank of England's (BoE) monetary policy as a hurdle for GBP rallies: “It is RaboResearch’s view that the BoE will likely keep interest rates on hold through to the end of the year.” Rabobank experts observe that “this could weigh on the Pound,” particularly as investors turn their attention to fiscal developments, as "headed into the October 28 UK budget, GBP could find itself on the back foot on fiscal concerns.”

Economic Indicator

Wholesale Price Index (MoM)

The wholesale price Index released by the Statistisches Bundesamt Deutschland shows value of sales made by wholesalers in Germany. A growing number in wholesales indicates increases in retail trade and consumption, that is seen as positive or bullish for the EUR, while a declining number indicates the weakened retail sectors, consumption, and the economy in Germany, that is seen as negative or bearish for the currency.

Economic Indicator

Wholesale Price Index (YoY)

GBP/USD strengthens to near 1.3500 as Fed rate hike bets ease

The GBP/USD pair gathers strength to near 1.3495 during the early European trading hours on Friday. The British Pound edges higher against the US Dollar as cooler-than-expected US consumer and producer price data have limited the Federal Reserve's room for further interest rate hikes. Traders will keep an eye on the US July Retail Sales report later on Friday.

EUR/USD gains as receding Fed hike bets weigh on USD; geopolitical risks cap upside

The EUR/USD pair attracts some follow-through buyers during the Asian session, and looks to build on the previous day's modest bounce from the vicinity of the 1.1500 psychological mark, or an over one-week low. Spot prices, however, remain confined in a two-week-old range and currently trade below 1.1550 amid mixed cues.

Gold sticks to losses but holds above $4,300 as reduced Fed hike bets weigh on USD

Gold recovers slightly from the $4,300 neighborhood heading into the European session, though it remains in negative territory for the second straight day. Moreover, a mixed fundamental backdrop warrants some caution before positioning for an extension of the retracement slide from $4,450, or the highest since June 5, set the previous day.

Ethereum on-chain signal remains weak even as mild retail distribution continues

Ethereum (ETH) continued to consolidate in the tight $1,800-$2,000 range amid weak signals across key on-chain metrics. ETH Exchange Netflow, which measures the difference between coins flowing in and out of exchanges, indicates mild dominance in selling activity after its 14-day moving average flipped positive.

Dollar dominance is cracking and the Fort Knox Gold question won’t go away

Imagine somebody repeatedly claiming to have $100,000 in the bank but refusing to produce a statement or even balance the checkbook. The money might be there, but without verification, skepticism would be reasonable.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.