EUR/GBP Posts Modest Gains Above The Mid-0.8500s, Eyes On Eurozone HICP Data

Euro banknotes — Stock Photo, Image

Image Source: DepositPhotos

The EUR/GBP pair holds positive ground above the mid-0.8500s during the early European trading hours on Friday. Investors await the Eurozone Harmonized Index of Consumer Prices (HICP) for fresh impetus. The cross currently trades near 0.8560, down 0.01% on the day.

The European Central Bank (ECB) is anticipated to take another step in its policy normalization process. The ECB President Christine Lagarde would rule out rate cuts at the March meeting, but financial markets believe that the first potential rate cuts might occur in the June meeting. The markets repriced policy easing expectations in February from around 150 basis points (bps) worth of rate cuts to 87 bps and expect the first rate cut in June of 25 bps and a total of 75 bps for this year. 

The Bank of England (BoE) Deputy Governor Dave Ramsden said he wants to see how long inflation will remain elevated before considering shifting monetary policy stance. The BoE policymakers pushed back against market expectations for early interest rate cuts, which lift the Pound Sterling (GBP) and cap the downside of the EUR/GBP cross. 

Looking ahead, market players will keep an eye on the Eurozone Harmonized Index of Consumer Prices (HICP) due on Friday, along with the HCOB Manufacturing PMI from Italy, France, and Germany. Additionally, the BoE's Huw Pill is set to speak later in the day. The attention will shift to the ECB interest rate decision next week. This event might trigger the volatility in the market and traders could find trading opportunities around the EUR/GBP cross. 



Today last price 0.856
Today Daily Change -0.0002
Today Daily Change % -0.02
Today daily open 0.8562


Daily SMA20 0.8547
Daily SMA50 0.8579
Daily SMA100 0.8625
Daily SMA200 0.8612


Previous Daily High 0.857
Previous Daily Low 0.8551
Previous Weekly High 0.8578
Previous Weekly Low 0.8528
Previous Monthly High 0.8578
Previous Monthly Low 0.8498
Daily Fibonacci 38.2% 0.8563
Daily Fibonacci 61.8% 0.8558
Daily Pivot Point S1 0.8552
Daily Pivot Point S2 0.8541
Daily Pivot Point S3 0.8532
Daily Pivot Point R1 0.8571
Daily Pivot Point R2 0.8581
Daily Pivot Point R3 0.8591

More By This Author:

USD/CHF Price Analysis: Rises To 0.8850 On Firmer US Dollar
USD/CAD Depreciates To Near 1.3560 On Higher Crude Oil Prices, US Manufacturing PMI Eyed
AUD/USD Holds Steady Below 0.6500 Amid Mixed Market Signals

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.