EUR/GBP slides below 0.8550 after mixed UK CPI, focus shifts to Eurozone inflation

Source Fxstreet
Apr 17, 2024 06:26
  • EUR/GBP moves negatively after paring intraday gains amid mixed UK inflation figures.
  • UK CPI MoM remained stable at a 0.6% increase in March, while the YoY index rose by 3.2%, exceeding expectations.
  • Traders shift their focus on the Eurozone Harmonized Index of Consumer Prices, set to be released Wednesday.

EUR/GBP faces downward pressure following mixed Consumer Price Index (CPI) data from the United Kingdom (UK). The EUR/GBP pair dips to near 0.8540 during the Asian session on Wednesday. Market attention now turns to the Eurozone Harmonized Index of Consumer Prices (HICP) for March, set to be released later in the day.

In March, UK CPI (MoM) maintained a steady pace of 0.6%, while year-over-year Consumer Inflation increased by 3.2%, slightly above the expectations of 3.1% but lower than the previous 3.4%. Meanwhile, Core CPI YoY rose by 4.2%, surpassing expectations of 4.1% but lower than the previous 4.5%.

The Pound Sterling (GBP) faces downward pressure as investors anticipate two rate cuts by the Bank of England (BoE) this year, with the initial move likely in August or September. BoE Governor Andrew Bailey stated on Tuesday that there is compelling evidence indicating a decline in UK inflation. The key question for BoE policymakers, according to Bailey, is how much additional evidence is needed before considering interest rate cuts.

On the other side, the Euro faces challenges amid growing speculation that the European Central Bank (ECB) will commence interest rate cuts in June, driven by a tepid Eurozone economic outlook and moderating core inflationary pressures.

During an interview with CNBC on Tuesday, ECB President Christine Lagarde suggested that rate cuts are imminent, barring any significant unforeseen developments. Lagarde remarked that the ECB is observing a disinflationary trend that aligns with expectations. Additionally, she noted that geopolitical events' influence on commodity prices has been relatively limited thus far.

EUR/GBP

Overview
Today last price 0.8534
Today Daily Change -0.0011
Today Daily Change % -0.13
Today daily open 0.8545
 
Trends
Daily SMA20 0.8561
Daily SMA50 0.8552
Daily SMA100 0.8575
Daily SMA200 0.8607
 
Levels
Previous Daily High 0.855
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% 0.8542
Daily Fibonacci 61.8% 0.8537
Daily Pivot Point S1 0.8532
Daily Pivot Point S2 0.8519
Daily Pivot Point S3 0.851
Daily Pivot Point R1 0.8554
Daily Pivot Point R2 0.8563
Daily Pivot Point R3 0.8576

 

 

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