EUR/GBP drops below 0.8600 after German data EURGBP Inflation InterestRate
Pound on Wednesday following inflation data from Germany and Spain which came in below the market consensus. For Thursday’ session, investors will eye Retail Sales data from Germany and the inflation figures from the European Union .The German Harmonized Index of Consumer Prices from May decelerated to 6.3% from its previous reading of 7.6% and below the consensus of 6.8%. Likewise, Spain reported on Tuesday that its HICP fell to 2.9% vs the 3.4% expected.
As a result of the lower inflation data, the German yields have weakened across the curve. The 10-year bond yield fell to 2.26% seeing 4.18% decrease on the day, while the 2-year yield stands at 2.72% with having lost 3.41% on the day, and the 5-year yielding 2.39% seeing a 3.38 % decline. Conversely, the British yields are edging higher and the divergence between the rates applied further pressure on the pair with the 2, 5 and 10-year seeing an increase of more than 0.80%.
For Thursday, markets are expecting the EU’s HICP to have further declined in May to 6.3% from its previous figure of 7%. Retail sales from Germany have contracted in the same period of time and show that the German economic activity continues to weaken. This is a further indication the ECB could ease itsholds a bearish outlook for the short term, as per the daily chart.
In case of further downside, support levels line up at the 0.8550 zone and below around the 0.8545 area and the 0.8520 level. In case the EUR/GBP exchange rate consolidates gains, resistance lines up at the 0.8600 level followed by the 0.8650 zone and the 0.8700 area.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EUR/GBP remains depressed below mid-0.8600s, hangs near YTD low after German CPIThe EUR/GBP cross prolongs its bearish trend for the fourth successive day and drops to a fresh YTD low during the first half of trading on Wednesday.
Read more »
EUR/GBP drops to new 2023 lows around 0.8630Further strength in the British pound dragged EUR/GBP to new YTD lows in the 0.8630/25 band on Tuesday. EUR/GBP weaker on GBP-buying EUR/GBP retreats
Read more »
EUR/GBP weakens simultaneously with Euro depreciationThe Euro is currently experiencing widespread losses and depreciation, which is having an impact on its pairs against the US Dollar, Japanese Yen and
Read more »
EUR/GBP aims to stretch recovery above 0.8650 ahead of preliminary Eurozone InflationThe EUR/GBP pair is aiming to extend its recovery from 0.8630 above the immediate resistance of 0.8650 in the early Tokyo session. The cross is gettin
Read more »
GBP/USD: Support around the 1.2275/2300 area may hold temporarily – INGEconomists at ING discuss EUR/GBP and GBP/USD outlooks. EUR/GBP can probably press support at 0.8650 “UK data is doing the most of the talking and it
Read more »
German inflation drops to lowest level in more than a yearGermany on Wednesday joined a list of major euro zone economies reporting a bigger than expected drop in inflation, suggesting that price growth may be falling more quickly than expected, adding to arguments for caution on rate hikes.
Read more »