EUR/GBP Finds Cushion Near 0.8500, Downside Remains Favored On Robust UK Labor Data

macbook pro on black table Image Source: 
 

  • EUR/GBP finds support near 0.8500; more downside seems likely on upbeat UK Employment data.
  • The expectations of BoE rate cuts remain lower as the UK’s wage growth remains higher than expectations.
  • Eurozone’s ZEW Survey Economic Sentiment improves surprisingly for February.
  • The EUR/GBP pair discovers an intermediate cushion near the psychological support of 0.8500 in the European session on Tuesday. The cross is expected to resume its downward journey as the United Kingdom Office for National Statistics (ONS) has reported upbeat employment data for three months ending December.The UK ONS reported that employers hired 72K workers, similar to reading in three months ending November. The  drops sharply to 3.8% from expectations of 4.0% and the prior release of 4.2%.Meanwhile, wage growth grew at the weakest pace in more than a year but was higher than the expectations of market participants. Average Earnings including bonuses rose at a slower pace of 5.8% against the former release of 6.7%. However, economists projected a slower wage growth rate of 5.6%.Going forward, investors will focus on the UK inflation data for January, which will be published on Wednesday. The headline inflation is forecasted to grow by 4.2% from 4.0% in December. In the same period, the core inflation that excludes volatile food and  is anticipated to have risen by 5.2% against 5.1%.A stubborn inflation data and a higher wage growth rate than market expectations would push back expectations of early rate cuts by the  (BoE).On the  front, surprisingly, the ZEW Survey – Economic Sentiment for February rose to 25.0 from 22.7 in January. Investors projected the economic sentiment to fade to 20.1. This has brought some strength to  but is insignificant to get underpinned against the Pound Sterling.
     EUR/GBP

    OVERVIEW Today last price 0.8511 Today Daily Change -0.0021 Today Daily Change % -0.25 Today daily open 0.8532 TRENDS Daily SMA20 0.8549 Daily SMA50 0.8594 Daily SMA100 0.8639 Daily SMA200 0.8621 LEVELS Previous Daily High 0.8547 Previous Daily Low 0.8528 Previous Weekly High 0.8572 Previous Weekly Low 0.8516 Previous Monthly High 0.8683 Previous Monthly Low 0.8513 Daily Fibonacci 38.2% 0.8536 Daily Fibonacci 61.8% 0.854 Daily Pivot Point S1 0.8524 Daily Pivot Point S2 0.8517 Daily Pivot Point S3 0.8506 Daily Pivot Point R1 0.8543 Daily Pivot Point R2 0.8554 Daily Pivot Point R3 0.8561

    More By This Author:Pound Sterling Soars On Upbeat UK Employment Data, US Inflation In Focus NZD/USD Loses Ground After Lower Kiwi Inflation Expectations, Edges Lower To Near 0.6110 USD/JPY Flatlines Above 149.30, Investors Await US CPI Data

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.