EUR/GBP declines toward 0.8400 amid uncertainty over French elections

Source Fxstreet
  • EUR/GBP is exposed to 0.8400 due to multiple headwinds.
  • The Euro weakens as French Macron’s surprise call for a snap election has resulted in political uncertainty.
  • UK’s steady wage growth has deepened fears of inflation remaining persistent.

The EUR/GBP pair seems exposed to more downside towards the round-level support of 0.8400. The cross is under pressure amid uncertain Euro’s appeal due to French President Emmanuel Macron’s decision to dissolve parliament and calling for a snap election and firm Pound Sterling amid expectations of the Bank of England (BoE) delaying rate cuts.

French Macron’s unprecedented call for a snap election came after exit polls for Eurozone parliamentary elections indicated that the general public desires a change in administration, resulting in political uncertainty as Marine Le Pen-led-Centrist’s alliance was already expected to suffer a defeat from Jordan Bardella-led-far-right National Rally. Seats won by the far-right at 32%-33% were more than twice the Centralist alliance.

Meanwhile, the Euro struggles to gain ground, albeit the European Central Bank (ECB) is refusing to commit to subsequent rate cuts. Last week, the ECB commenced its rate-cut campaign after reducing the Deposit Facility Rate by 25 basis points (bps) for the first time in five years but hesitate to commit a linear declining path as it worries that progress in inflation towards 2% could pause due to steady wage growth outlook. Currently, financial markets expect that the BoE will deliver only one more rate-cut decision by the year-end.

In the United Kingdom (UK) economy, interest rates appear to remain at their current levels for a longer period as wage growth remains steady despite soft labor demand. The UK labor market report for three months ending April showed that Average Earnings Excluding Bonuses, which is a wage inflation measure, grew in line with estimates and the prior release of 6.0%. Wage growth has been a major driver of service inflation, which has been a barrier for Bank of England (BoE) policymakers to initiate a confident return to policy normalization.

The number of employed individuals decreased consecutively for the fourth time as firms refrained from hiring due to weak household spending. The labor force shrank by 140K workers, lower than the prior release of 177 K. The ILO Unemployment Rate rose to 4.4% from the estimates and the prior release of 4.3%.

EUR/GBP

Overview
Today last price 0.8443
Today Daily Change -0.0013
Today Daily Change % -0.15
Today daily open 0.8456
 
Trends
Daily SMA20 0.8523
Daily SMA50 0.8553
Daily SMA100 0.855
Daily SMA200 0.86
 
Levels
Previous Daily High 0.8491
Previous Daily Low 0.844
Previous Weekly High 0.8536
Previous Weekly Low 0.8489
Previous Monthly High 0.8621
Previous Monthly Low 0.8484
Daily Fibonacci 38.2% 0.846
Daily Fibonacci 61.8% 0.8472
Daily Pivot Point S1 0.8434
Daily Pivot Point S2 0.8411
Daily Pivot Point S3 0.8383
Daily Pivot Point R1 0.8485
Daily Pivot Point R2 0.8514
Daily Pivot Point R3 0.8536

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Copper Long-term forecast: Will Copper Price Expected To Soar In 2023?The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
Author  Mitrade
Mar 13, 2023
The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
placeholder
Bitcoin CME gaps at $35,000, $27,000 and $21,000, which one gets filled first?Prioritize filling the $27,000 gap and even try higher.
Author  FXStreet
Aug 21, 2023
Prioritize filling the $27,000 gap and even try higher.
placeholder
Japanese Yen stands tall near one-month top against USD on hawkish BoJ talksThe Japanese Yen (JPY) rallied to the highest level since early February against its American counterpart on Friday amid bets for an imminent shift in the Bank of Japan's (BoJ) policy stance.
Author  FXStreet
Mar 11, Mon
The Japanese Yen (JPY) rallied to the highest level since early February against its American counterpart on Friday amid bets for an imminent shift in the Bank of Japan's (BoJ) policy stance.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Jul 01, Mon
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
Ethereum Retraces: Here’s Why ETH Bulls Must Decisively Break Above $3,500Ethereum is firm when writing, rapidly rising after slipping to around $2,800 earlier this month. As of writing, the second most valuable coin is up by over $24% and remains in an uptrend despite the scare of July 4 and 5.
Author  NewsBTC
1 hour ago
Ethereum is firm when writing, rapidly rising after slipping to around $2,800 earlier this month. As of writing, the second most valuable coin is up by over $24% and remains in an uptrend despite the scare of July 4 and 5.
goTop
quote