EUR/GBP depreciates to near 0.8600 after mixed Eurozone and UK PMI figures

Source Fxstreet
Apr 23, 2024 08:45
  • EUR/GBP received downward pressure after the mixed UK PMI data released on Tuesday.
  • ECB Vice President Luis de Guindos stated that the central bank plans to lower interest rates in June.
  • UK Services PMI improved to 54.9 in April, against the expected 53.0 and 53.1 prior.

The EUR/GBP cross pared its daily gains, trading lower around 0.8620 in European hours on Tuesday. After mixed figures from the United Kingdom (UK) and the Eurozone, the currency cross lost ground. The preliminary S&P Global/CIPS UK Manufacturing PMI declined to 48.7 against the expectations of remaining constant at the reading of 50.3 in April. While Services PMI increased to 54.9 against the expected reading of 53.0 and 53.1 prior. Composite PMI increased to 54.0 from the previous reading of 52.8.

In April, the preliminary HCOB Manufacturing PMI fell to 45.6, disappointing against the anticipated improvement to 46.5 from the previous 46.1. However, the Services PMI showed strength, reaching 52.9 compared to the estimated 51.8 and the prior 51.5. The Composite PMI for April exhibited an improved reading of 51.4, surpassing both the previous 50.3 and the expected 50.8.

Following the release of mixed German PMI data, the Euro gained ground. April's preliminary German Manufacturing PMI climbed to 42.2, slightly below the expected 42.8 but up from March's 41.9, marking a two-month high. Services PMI also saw a notable improvement, reaching 53.3, surpassing the market's expectation of 50.6 and hitting a fresh ten-month high. The Composite Output Index for April stood at 50.5, exceeding both the expected 48.6 and March's 47.7, also reaching a ten-month high.

According to Reuters, European Central Bank (ECB) Vice President Luis de Guindos stated in a newspaper interview that the ECB plans to lower interest rates in June. However, he stressed the necessity of prudence regarding future actions and the importance of considering signals from the US Federal Reserve (Fed).

On the United Kingdom’s (UK) side, interest rate futures indicate full pricing for a quarter-point rate cut by the Bank of England in August, with expectations of two rate cuts by the end of the year. This increasing speculation about rate cuts by the BoE is putting downward pressure on the Pound Sterling (GBP).

EUR/GBP

Overview
Today last price 0.8635
Today Daily Change 0.0009
Today Daily Change % 0.10
Today daily open 0.8626
 
Trends
Daily SMA20 0.8566
Daily SMA50 0.8556
Daily SMA100 0.8575
Daily SMA200 0.8607
 
Levels
Previous Daily High 0.8644
Previous Daily Low 0.8608
Previous Weekly High 0.8616
Previous Weekly Low 0.8521
Previous Monthly High 0.8602
Previous Monthly Low 0.8504
Daily Fibonacci 38.2% 0.8631
Daily Fibonacci 61.8% 0.8622
Daily Pivot Point S1 0.8608
Daily Pivot Point S2 0.859
Daily Pivot Point S3 0.8572
Daily Pivot Point R1 0.8644
Daily Pivot Point R2 0.8662
Daily Pivot Point R3 0.8681

 

 

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