- The pound is under pressure at the start of an important week.
- EURGBP approached last week’s high near 0.8830.
- Consolidating above 0.8830 could open the doors to 0.8900.
The pound is one of the worst performing currencies in the G10 on Monday. EURGBP broke above 0.8800 and rose to 0.8813, hitting the highest level since Thursday.
EURGBP gains momentum
The cross remains near the highs with support from a weaker pound across the board. While GBPUSD is trading at daily lows below 1.1730, EURUSD is moving towards daily highs above 1.0330.
Economic data from the Eurozone showed an increase in Industrial Production of 0.9% in September, above the 0.5% expected. Employment and GDP data will be released on Tuesday.
In the UK, employment data will be reported on Tuesday. The unemployment rate is expected to remain at 3.5%. CPI for October will be released on Wednesday, the main data of which is expected to rise to 10.7% from 10.1%.
On Thursday, the key event will be the fall budget statement. “Markets await Chancellor Hunt’s autumn statement on Thursday. Hunt faces the delicate balance of trying to shore up UK policy credibility to reassure markets and sterling, while making spending cuts and earnings improvements that do not further weaken already weak support from the Tories,” the Scotiabank analysts said.
Technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
