The EURGBP pair has seen an upward movement at 0.85881, with the Euro gaining strength against the British Pound this week due to the Bank of England adopting a more accommodative stance.
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]
- The EUR has moved higher on the week against the GBP as ther BoE turns dovish.
The EUR/GBP pair has moved higher for the week, with the Euro (EUR) gaining some ground against the Pound Sterling (GBP). A dovish Bank of England (BoE) has struck the GBP with bearish undertones, and despite beleaguered economic data for the broader European Union (EU) region, the Euro is the tug-of-war winner for this week.
The EUR started the week on the low end after Purchasing Manager Index (PMI) figures for the EU showed economic sentiment is declining for the continent. Later, Eurostat sales figures showed the retail space contracted by -1%, further capping upside potential for the Euro.
On the United Kingdom (UK) side, the BoE’s Governor Andrew Bailey and members of the BoE’s Monetary Policy Committee (MPC) testified before the UK Parliament, speaking about inflation expectations and the overall economy.
Governor Bailey and his fellow MPC members struck a decidedly dovish tone, stating that the rate hike cycle for the BoE could very well be at the top, as well as expressing concerns that too much more action from the UK’s central bank could worsen the odds of achieving a “soft landing” for the domestic economy.
The softening stance from the BoE sent the GBP broadly lower for the week.
The economic calendar for the first half of next week is notably GBP-heavy, with very little meaningful releases from the EU side.
Monday sees appearances from the BoE’s chief economist Huw Pill and MPC member Catherine L. Mann. Tuesday brings UK unemployment figures and wages data, and Wednesday will bring UK manufacturing and Gross Domestic Product (GDP) data.
Wage growth, unemployment, and industrial data are all anticipated to slightly worsen.
The Euro-Pound pair has consolidated since June, cycling in a rough range between 0.8660 and 0.8520. A high-side resistance zone sits above, between 0.8740 and 0.8720, while any significant downside breaks could see the floor give way beneath the 0.8500 major handle.
A break below 0.8500 would see the Euro trading into 13-month lows against the Sterling.
[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.
- EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
- EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group
