Home Forex EUR/GBP sinks to half-month low as sterling recovers

EUR/GBP sinks to half-month low as sterling recovers

by SuperiorInvest


  • EUR/GBP dips to 0.8660 as Sterling sees Friday recovery.
  • EU retail sales, UK GDP in the second half of the economic calendar for next week.
  • GBP the big winner for Friday.

EUR/GBP is falling towards 0.8660 as the market heads into the closing bell of the week, and GBP’s recovery from recent months-long lows is pulling EUR/GBP down to offers not seen in nearly three weeks.

The euro (EUR) traded mostly flat against sterling in the broad band this week, before market sentiment revived on the back of a missed US non-farm payrolls (NFP) report. willingness to take risks for investors heading into the eleventh hour.

GBP set for another spike in volatility next Friday, UK GDP in pipeline

The second half of next week will see top-level EU and UK data, with EU retail sales on Wednesday and UK gross domestic product (GDP) figures due next Friday.

EU retail sales are currently expected to fall further in the full year to September, estimated at -3.1% compared to -2.1% previously, while the UK GDP It is expected to moderate in Q3, with print forecast at -0.1% compared to 0.2% in the previous quarter.

EUR/GBP Technical Outlook

EUR/GBP’s softening on Friday sees the pair fall straight to 0.8660, hitting a rising trendline from the mid-August low just below 0.8500.

The pair diverged from the long-term mid-prices and fell from the 200-day simple moving average (SMA), which is currently moving lower from the 0.8700 handle.

Short-term technical support for EUR/GBP is at the 50-day rising SMA from the 0.8640 level, and investors will want to keep an eye on any swings in the pair’s bids as prices battle for a clean break. bullish trend line.

EUR/GBP daily chart

EUR/GBP Technical Levels

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