EUR/GBP gathers strength for further upside above 0.8550 ahead of BoE’s Bailey speech – Crypto News – Crypto News
Connect with us
EUR/GBP struggles around 0.8660, upside remain favored on hawkish ECB bets EUR/GBP struggles around 0.8660, upside remain favored on hawkish ECB bets

others

EUR/GBP gathers strength for further upside above 0.8550 ahead of BoE’s Bailey speech – Crypto News

Published

2 years ago

on

Share:

  • EUR/GBP is making efforts for a range extension towards the north ahead of Andrew Bailey’s speech.
  • An economic indicator that could create more troubles for BoE policymakers is the labor cost data.
  • ECB Centeno cited that Eurozone’s inflation could come under 3% by the end of 2023.

The EUR/GBP The pair is oscillating in a narrow range around 0.8550 in the London session. The asset is demonstrating a back-and-forth action after a solid recovery as investors are awaiting the speech from Bank of England (BoE) Governor Andrew Bailey for further guidance.

Inflation in the United Kingdom is not showing signs of deceleration despite that BoE and UK diplomats have extended the scope of an inflation-control toolkit to coercion. Therefore, the speech from Andrew Bailey will be keenly watched to get cues about inflation and interest rate guidance.

The burden of red-hot inflation on households is elevating as household demand has reported a steepest fall in the past 14 years. Apart from Andrew Bailey’s speech, investors will keep an eye on the labor market data.

As per the preliminary estimates, Claimant Count Change is expected to show an increase of 20.5K in June vs. a decline of 13.6K reported last month. The unemployment rate is seen unchanged at 3.8% and Three-month Average Earnings Index is expected to increase to 6.8% against the earlier release of 6.5%.

An economic indicator that could create more troubles for BoE policymakers is the labor cost data, which is expected to increase further and make the inflation situation worse.

on the euro zone front, Sentix Investor Confidence has turned vulnerable to -22 vs. the former release of -17. This indicates a significant loss in the confidence of investors towards current and forward economic conditions. This could be the outcome of higher interest rates from the European Central Bank (ECB), which are expected to tighten further as the victory over inflation has not been announced yet.

On Friday, ECB Governing Council member and Bank of Portugal Governor, Mario Centeno cited that Eurozone’s inflation could come under 3% by the end of 2023.” He further added inflation is coming down faster while the Eurozone labor market is the strongest it has ever been.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending