EUR/GBP has surged back to familiar highs near 0.8430 as market action favors the Euro against the Pound Sterling. Investors are increasing their bets on a Bank of England (BoE) rate cut next week, softening the GBP and boosting the EUR/GBP pair.
Money markets are now pricing in over a 50% chance of at least a quarter-point rate cut at the upcoming BoE meeting on August 1. This shift in sentiment has lifted the Euro and pushed the pair higher.
Looking ahead, Euro-centric events such as the preliminary Pan-European Gross Domestic Product (GDP) figures for Q2 and July’s Harmonized Index of Consumer Prices (HICP) will also impact the EUR/GBP pair. These data releases could further influence market dynamics and the direction of the currency pair.
EUR/GBP Technical Analysis
Despite the recent rally, EUR/GBP is still trading near the lower end of a downward trend. The pair fell significantly in 2024, hitting a two-year low near 0.8383. Long-term traders are monitoring the pair’s performance, especially in relation to the 200-day Exponential Moving Average (EMA) at 0.8545.
With potential recovery stages on the horizon, Euro bidders are closely watching economic data and the BoE’s rate decision for further clues on the pair’s direction.
EUR/GBP Hourly and Daily Charts
Analysis:
The recent rise in the EUR/GBP pair is driven by market expectations of a BoE rate cut and Euro-centric data releases. Investors are positioning themselves accordingly, leading to a surge in the Euro against the Pound Sterling. Traders are closely monitoring key levels, such as the 200-day EMA, for potential signals of a trend reversal or continuation.
For individuals interested in currency trading or international investments, keeping an eye on events like central bank decisions and economic indicators can provide valuable insights into market movements. Understanding the impact of these factors on currency pairs like EUR/GBP can help individuals make informed decisions about their finances and investment strategies.