• EUR/GBP gains ground around 0.8645 following the UK inflation data.
  • The UK Consumer Price Index (CPI) came in worse than market expectations.
  • The European Central Bank’s Lagarde warned that inflation might rise again in December as a result of colder weather.
  • Traders will monitor October’s Eurozone Current Account, Construction Output, and ECB’s Lane speech.

The EUR/GBP cross recovers its recent losses during the early European session on Wednesday. The weaker-than-expected UK inflation data exerts some selling pressure on the British Pound (GBP) and lends some support to EUR/GBP. The cross currently trades near 0.8645, gaining 0.21% on the day.

The latest data from the UK Office for National Statistics revealed that the nation’s inflation data, as measured by the Consumer Price Index (CPI), came in at -0.2% MoM in November from the previous reading of 0%, missing the estimation of 0.1%. Additionally, the annual CPI figure rose 3.9% versus 4.6% prior, below the market consensus of 4.4%. The Core CPI, which excludes volatile food and energy prices, eased from 5.7% in October to 5.1% in November, worse than the expectation of 5.6%. In response to the data, the GBP edges lower against the Euro (EUR) and creates a tailwind for the EUR/GBP cross.

The Bank of England (BoE) Deputy Governor Sarah Breeden remarked on Tuesday that she had no predetermined path for interest rates in mind but that policy needed to remain restrictive in order to keep inflation pressure in check.

Eurostat data released on Tuesday indicated that Eurozone inflation was weaker than expected in November owing to a drop in energy prices. However, European Central Bank (ECB) President Christine Lagarde warned that inflation might rise again in December as a result of colder weather, which raises energy demand and prices. Furthermore, the ECB study said that climate change would make monetary policymakers’ tasks more difficult.

The ECB’s policymaker Bostjan Vasle stated on Monday that they would need at least until spring to assess their policy stance, and market expectations for interest rate cuts in March or April are premature.

Traders will keep an eye on the Eurozone Current Account and Construction Output for October. ECB’s Philip Lane is also set to speak later on Wednesday. Traders will take cues from these data and find trading opportunities around the EUR/GBP cross.


Today last price0.8621
Today Daily Change-0.0007
Today Daily Change %-0.08
Today daily open0.8628
Daily SMA200.8619
Daily SMA500.8669
Daily SMA1000.8638
Daily SMA2000.8661
Previous Daily High0.8639
Previous Daily Low0.8598
Previous Weekly High0.8634
Previous Weekly Low0.8549
Previous Monthly High0.8766
Previous Monthly Low0.8614
Daily Fibonacci 38.2%0.8614
Daily Fibonacci 61.8%0.8623
Daily Pivot Point S10.8604
Daily Pivot Point S20.8581
Daily Pivot Point S30.8563
Daily Pivot Point R10.8645
Daily Pivot Point R20.8663
Daily Pivot Point R30.8686

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