The EUR/GBP cross attracts some dip-buying near the 0.8660 region on Friday and sticks to its modest intraday gains through the early part of the Euro
pean session. Spot prices currently trade around the 0.8680 area, up for the third straight day and fifth in the previous six, albeit lack follow-through and remain below a two-month peak touched on Thursday.
The British Pound's relative underperformance could be attributed to the Bank of England's surprise pause on Thursday, which, in turn, is seen acting as a tailwind for the EUR/GBP cross. In fact, the UK central bank ended a run of 14 straight interest rate hikes in the wake of the recent deceleration of inflation, signs that the UK labour market is cooling and reviving recession fears.
Adding to this, softer-than-expected UK macro data released today undermines the Sterling and lends additional support to the EUR/GBP cross. The UK Office for National Statistics reported that the headline Retail Sales rebounded and increased by 0.4% in August following the previous month's sharp 1.1% fall. The rise, however, was slightly below the 0.5 % growth anticipated.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EUR/GBP IG Client Sentiment: Our data shows traders are now net-short EUR/GBP for the first time since May 04, 2023 when EUR/GBP traded near 0.88.Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EUR/GBP-bullish contrarian trading bias.
Read more »
EUR/GBP may have another go at breaking above 0.87Soft UK CPI are hurting GBP, Kit Juckes, Chief Global FX Strategist at Société Générale, reports. Rate rethink is dragging the Pound lower UK inflatio
Read more »
EUR/GBP testing higher waters near 0.8650 after UK CPI missThe EUR/GBP caught a bump higher during Wednesday trading after the United Kingdom’s (UK) inflation reading came in below market expectations, sending
Read more »
BoE Preview: EUR/GBP set to end the day higher on dovish commentaryEconomists at Danske Bank discuss EUR/GBP outlook ahead of the Bank of England (BoE) meeting. GBP headwinds to set in In our base case of a 25 bps hik
Read more »
EUR/GBP climbs to two-month peaks near 0.8680 on steady BoEThe British pound surrenders extra ground and lifts EUR/GBP to new two-month tops just below 0.8700 the figure on Thursday. EUR/GBP up on BoE surprise
Read more »
EUR/GBP: Relative rates seen as a moderate positiveThe Bank of England (BoE) decided to keep the Bank Rate (key policy rate) unchanged at 5.25%. EUR/GBP initially moved higher but partly retraced the m
Read more »