By Areena FxThe EUR/GBP pair is currently trading at 0.8536, showing slight losses in Friday’s session. This marks the continuation of a seven-week downward trend for the pair. Investors are eagerly awaiting upcoming economic data from the UK, particularly inflation and labor market reports.
The Pound has been gaining strength against the Euro due to differing monetary policy expectations between the European Central Bank (ECB) and the Bank of England (BoE). While the BoE has adopted a more hawkish stance, hinting at potential interest rate hikes, the ECB is facing expectations of easing measures, including a possible interest rate cut in April.
Next week’s release of UK economic data, including the Consumer Price Index (CPI) and labor market figures, will play a crucial role in shaping market expectations. Forecasts suggest a rise in inflation, which could further support the BoE’s reluctance to implement rate cuts. In contrast, ongoing expectations of easing measures from the ECB are contributing to the downward pressure on the EUR/GBP pair.
Technically, both daily and weekly charts indicate bearish signals, with the Relative Strength Index (RSI) showing a negative direction. The pair is trading below key Simple Moving Averages (SMAs), suggesting continued bearish momentum. The current seven-week losing streak further reinforces the negative outlook for the pair, potentially paving the way for further declines.