GBP/USD, EUR/GBP and FTSE 100 Weekly Outlooks - UK Webinar
GBP/USD, EUR/GBP and FTSE 100 – Prices, Charts and Analysis:
- GBP/USD – two heavyweight drivers this week.
- Bank of England announcement (Thursday) and US Labor Report (Friday) key this week,
A raft of economic data releases this week will be overshadowed by the BoE policy announcement, and Quarterly Inflation Report, on Thursday and the latest look at US employment data (NFPs) on Friday, two important economic events. The UK central bank is expected to leave policy unchanged although voting patterns may shift the dial a little. Governor Andrew Bailey will also give his latest views on the health of the economy and any further dovish shift – additional QE or forward guidance - may weigh on Sterling. The US dollar is trying to find a bottom after its recent sell-off and will need another good set of payroll figures to help its cause.
EUR/GBP has broken back below trend and is currently struggling to push higher. The Euro and Sterling both had a positive tone last week going into month-end and sellers have appeared in both currencies today. EUR/GBP currently trades either side of 0.9000 and today opened below both the 20- and 50-dma, adding to short-term negative sentiment. A group of recent lows around 0.8940 should hold if Fib retracement at 0.8891 breaks, all things being equal, while trend resistance and a recent high print, both around 0.9145, should temper further upside.
EURGBP Daily Price Chart (January – August 3, 2020)
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