empty
30.08.2024 12:01 PM
EUR/GBP: Overview and Analysis

This image is no longer relevant

The EUR/GBP pair is still struggling, continuing its losing streak.

This image is no longer relevant

There's a good chance that the EUR/GBP pair will keep dropping. The British pound is getting a boost from the Bank of England's firm stance on keeping interest rates higher for longer compared to the European Central Bank.

At the Jackson Hole symposium last week, Bank of England Governor Andrew Bailey pointed out that the knock-on effects of inflationary pressures might be less significant than previously thought. He also advised against rushing into further interest rate cuts. Earlier, on August 1, the Bank of England had already cut rates by 25 basis points, bringing them down to 5%. Meanwhile, money markets are expecting another 40 basis point cut by the end of this year.

In the UK, house prices rose by 2.4% year-on-year in August, up from July's 2.1%. This was the sixth straight month of price increases and the biggest jump since December 2022. But in a surprising twist, monthly house prices actually dipped by 0.2% after a 0.3% rise in July, despite market expectations of a 0.3% increase.

Turning to the euro, inflation in the Eurozone slowed even further in August, according to CPI data from Germany and Spain. This slowdown has led to growing expectations that the European Central Bank might cut interest rates, which is putting pressure on the euro and dragging down the EUR/GBP pair.

Carsten Brzeski, Head of Macroeconomics at ING, called the slowdown in inflation great news for the ECB. He pointed out that the combination of an economic slowdown and decreasing inflation provides the perfect backdrop for rate cuts. However, he also cautioned that inflation in the services sector is still a concern.

Today, it's worth keeping an eye on the Eurozone CPI, as it could offer more clues about the health of the Eurozone economy and create new trading opportunities.

From a technical perspective, the indicators suggest that the path of least resistance for the pair remains downward, with oscillators in negative territory and far from oversold levels.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

April to play crucial role in Europe's gas future

Europe's gas sector is entering a critical phase, as the end of the heating season sets the stage for refilling storage facilities, which are now two-thirds empty after the winter

Miroslaw Bawulski 13:01 2025-03-31 UTC+2

WTI – West Texas Intermediate. Prices Lack Support for Growth

West Texas Intermediate (WTI) crude oil prices are attempting to attract buyers, but the market remains in a state of uncertainty. Concerns over President Trump's aggressive trade tariffs are putting

Irina Yanina 12:39 2025-03-31 UTC+2

EUR/USD. Analysis and Forecast

At the start of the new week during the Asian session, the EUR/USD pair attempted to attract buyers, but this was unsuccessful. The euro received support from easing concerns about

Irina Yanina 12:35 2025-03-31 UTC+2

US stock market runs into trouble

Rumors about mutual tariffs and another blow to consumer confidence triggered the second-worst sell-off of the S&P 500 this year. Investors are still holding piles of US stocks

Marek Petkovich 10:58 2025-03-31 UTC+2

EUR/USD. Hello, April: Eurozone Inflation Report, ISM Indices, and Nonfarm Payrolls

The first week of every month is the most informative for EUR/USD traders. The economic calendar traditionally includes a report on inflation growth in the eurozone, American ISM indices

Irina Manzenko 06:28 2025-03-31 UTC+2

GBP/USD Pair Overview – March 31: Nonfarm Payrolls, Trump, and Unemployment May Create New Problems for the Dollar

The GBP/USD currency pair continued to trade sideways near its highs on Friday. This sideways movement has persisted for several weeks, and the British pound has not managed even

Paolo Greco 06:24 2025-03-31 UTC+2

EUR/USD Pair Overview – March 31: A New Week of Trials for the Dollar

The EUR/USD currency pair rose again on Friday. As we can see, the correction against the upward trend of recent weeks ended very quickly. But that's no surprise, given that

Paolo Greco 06:24 2025-03-31 UTC+2

What to Pay Attention to on March 31? A Breakdown of Fundamental Events for Beginners

There are very few macroeconomic events scheduled for Monday. The only somewhat interesting reports will come from Germany. Retail sales and inflation data for March will be released. However, we'd

Paolo Greco 03:21 2025-03-31 UTC+2

AUD/USD: Analysis and Forecast

The AUD/USD pair continues its sideways consolidation, remaining within a familiar range near the key psychological level of 0.6300. This movement is driven by several factors impacting global market sentiment

Irina Yanina 11:16 2025-03-28 UTC+2

EUR/USD. Analysis and Forecast

Today, the EUR/USD pair is consolidating near the key psychological level of 1.0800, showing no intention of retreating below 1.0780 as traders and investors await the release of the U.S

Irina Yanina 10:45 2025-03-28 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.