Never miss a story from Nick Cawley

Subscribe to recieve updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from Daily FX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Nick Cawley

You can manage you subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

EURGBP News and Talking Points

- EURGBP pulls back marginally after hitting an eleven-month low.

- UK and EZ inflation data will be closely eyed on Wednesday.

The DailyFX Q2 Trading Forecasts for all major currencies,commodities and indices, are now availableto download to help you make more informed trading decisions.

EURGBP Bounces Off Low But Reprieve May Prove Fleeting

Business sentiment in Germany fell sharply, ZEW data showed Tuesday, while Euro-Zone economic sentiment hit a five-and-a-half year low as the ongoing international trade dispute and the latest actions in Syria weighed on businesses. The single currency however shrugged off the double dose off bad news and moved back off its 11 month low against GBP of 0.86257, albeit marginally.

Earlier in the day, data from the Office for National Statistics showed UK employment hitting a record high while UK unemployment fell to its lowest level since 1975. Wage data showed UK wages rising above inflation for the first time in around a year – 2.8% vs. 2.7%.

EURGBP will be watched closely again on Wednesday when UK and Euro-Zone inflation data hits the screens. UK consumer prices are expected to remain unchanged at 2.7%, with the potential for a slightly lower outturn, while the final Euro-Zone number is expected to remain unchanged at 1.4%, well below the ECB’s target rate of around 2%. The European Central Bank is struggling to stoke inflation in the single-block, despite buying in excess of EUR2.3 trillion of government debt in an effort to kick-start the economy and boost prices.

EURGBP may still move lower with the May 2017 and December 2016 lows between 0.8300 and 0.83150 the likely next downside target.

We will covering the UK Inflation Release from 09:15 am live on Wednesday April 18.

EURGBP Weekly Price Chart (August 2014 – April 17, 2018)

EURGBP Nudges Higher; Ignores Weak EZ Sentiment Data

Chart by IG

If you are new to foreign exchange, or if you would like to update your knowledge base, download our New to FX Guide and our Traits of Successful Traders to help you on your journey.

What’s your opinion on EURGBP? Share your thoughts with us using the comments section at the end of the article or you can contact the author via email at Nicholas.cawley@ig.com or via Twitter @nickcawley1

--- Written by Nick Cawley, Analyst