Investors seem to have a more pessimistic vision of the sterling pound, presumably due to the fiscal corset that currently catches the Chancellor of the United Kingdom, Rachel Reeves, says Chris Turner, FX analyst of ING.
The EUR/GBP will challenge the maximum of the April peak at 0.8735
“However, this week, the story could be more macro and focus particularly on the labor market. This morning, we have already seen a quite bad KPMG labor market survey and on Thursday of this week the June market data will be published. In May, the payrolls fell into a large amount of 109K. Most expect this number to be reviewed up.”
“If not, perhaps the United Kingdom labor market is in a weaker position after all, and the Bank of England will have to cut the rates more quickly. Tomorrow, we will also see the data of the June CPI, where the inflation of services is expected to be lowered again, which would also support a little faster BOE cuts.
“The EUR/GBP has maintained the support at 0.8600. This week’s data could see the EUR/GBP break the resistance by 0.8670 in a movement to challenge the maximum of the April peak at 0.8735.”
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.
