Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
British Pound (GBP) Latest: EUR/GBP Easing After Surprise UK Inflation Rise

British Pound (GBP) Latest: EUR/GBP Easing After Surprise UK Inflation Rise

What's on this page

GBP price, UK inflation, news and analysis:

  • GBP/USD is rising gently after an unexpected increase in UK inflation last month.
  • EUR/GBP is slipping back ahead of Thursday’s ECB meeting and a European Council summit that starts Friday to discuss an EU recovery fund.

GBP edges higher after UK inflation data

GBP/USD has been given a mild boost, and EUR/GBP is sliding modestly, after news of an unexpected increase in UK inflation in June to 0.6% year/year from 0.5% in May. Analysts polled by the news agencies had predicted a dip to 0.4% but the figure came in higher because of an increase in the price of gaming consoles during lockdown.

Meanwhile, UK consumer spending fell at a much slower rate last month as Covid-19 restrictions were eased, according to Visa’s UK consumer spending index. This report is not watched closely in the markets but GBP bulls may take heart from its finding that, on a monthly basis, spending rose a record 16.6% following an 11.2% increase in May.

EUR/GBP Price Chart, One-Hour Timeframe (July 9 -15, 2020)

Latest EUR/GBP price chart.

Chart by IG (You can click on it for a larger image)

EUR Forecast
EUR Forecast
Recommended by Martin Essex, MSTA
Download our fresh Q3 Euro forecast
Get My Guide

Looking ahead, the next moves in EUR/GBP will likely be determined by the outcomes of Thursday’s meeting of the European Central Bank’s rate-setting Governing Council and the European Council summit on Friday/Saturday to discuss the proposed EU recovery fund.

You can find a guide here to how the ECB’s monetary policy decisions can affect the value of the Euro

The ECB will likely leave Eurozone monetary policy unchanged but its president, Christine Lagarde, could potentially move the Euro at her press conference following the decision. Rather more important will be the attempts to reach agreement on the proposed €750 billion fund despite opposition from the “frugal four”: Austria, Denmark, the Netherlands and Sweden. A failure to agree is seen as probable but could still weaken EUR/USD and EUR/GBP.

Ahead of that, UK employment data due Thursday are not expected to move GBP, with analysts predicting a rise of 250,000 in claimants in June, down from a 528,900 increase in May.

EUR/GBP Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 10% -21% -2%
Weekly 24% -35% -3%
What does it mean for price action?
Get My Guide

We look at currencies regularly in the DailyFX Trading Global Markets Decoded podcasts that you can find here on Apple or wherever you go for your podcasts

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES