EUR/GBP remains below 0.8550 amid improved Eurozone manufacturing figures

Source Fxstreet
Apr 15, 2024 09:16
  • EUR/GBP continues to lose ground despite improved Eurozone manufacturing data.
  • Eurozone Industrial Production (MoM) rose by 0.8% in February, swinging from a 3.0% decrease in January.
  • The Pound Sterling might have received support from the hawkish remarks from BoE’s policymaker.

EUR/GBP moves downward to near 0.8540 during the European trading hours on Monday. The Euro (EUR) failed to react to the improved data from the Eurozone’s manufacturing sector. The seasonally adjusted Industrial Production increased by 0.8% MoM in February, swinging from the previous decline of 3.0%. The annual index reduced by 6.4% for the said period, lower than the previous decrease of 6.6%.

The EUR encountered struggles against the GBP following the European Central Bank's (ECB) indication that there might be a consideration to lower policy rates in June if underlying inflation continues to decelerate as anticipated.

According to Reuters, Gediminas Šimkus, a member of the ECB Governing Council, suggested on Monday above 50% probability of witnessing more than three rate cuts throughout the year.

The Pound Sterling (GBP) appreciates on adjusting market forecasts for interest rate cuts by the Bank of England (BoE). The policy rate is now expected to decline to around 4.75% by the end of 2024, down from the current rate of 5.25%. This marks a shift from the previous expectation of a drop to 4.5% by December.

Additionally, the hawkish remarks from BoE’s policymaker, Megan Greene have supported the British Pound (GBP), which might have contributed to pressure on the EUR/GBP cross. She emphasized that rate cuts in the United Kingdom (UK) should still be considered distant, pointing to a greater risk of persistent inflation in the country.

Traders will likely pay close attention to the speech by Sarah Breeden, BoE's Deputy Governor for Financial Stability, at the Innovate Finance Global Summit 2024 on Monday.

EUR/GBP

Overview
Today last price 0.8538
Today Daily Change -0.0009
Today Daily Change % -0.11
Today daily open 0.8547
 
Trends
Daily SMA20 0.8561
Daily SMA50 0.8552
Daily SMA100 0.8578
Daily SMA200 0.8607
 
Levels
Previous Daily High 0.8552
Previous Daily Low 0.8528
Previous Weekly High 0.8584
Previous Weekly Low 0.8528
Previous Monthly High 0.8602
Previous Monthly Low 0.8504
Daily Fibonacci 38.2% 0.8543
Daily Fibonacci 61.8% 0.8537
Daily Pivot Point S1 0.8533
Daily Pivot Point S2 0.8519
Daily Pivot Point S3 0.851
Daily Pivot Point R1 0.8556
Daily Pivot Point R2 0.8566
Daily Pivot Point R3 0.858

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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