EUR/GBP continues the winning streak near 0.8670, ECB Lagarde’s speech eyed
- EUR/GBP extends gains for a second successive month.
- BoE’s decision to pause the rate-hiking cycle weakens the Pound Sterling.
- Investors await ECB officials to deliver speeches during the week, seeking fresh cues on the ECB’s stance.
EUR/GBP extends its gains for the fourth successive day, trading higher around 0.8670 during the European trading hours on Tuesday.
The British Pound (GBP) is grappling with a relative underperformance, primarily driven by the Bank of England's (BoE) unexpected decision to pause its rate-hiking cycle in September. This marked a departure from the trend observed since December 2021, as the BoE opted not to raise interest rates.
The central bank also revised its growth forecast for the July-September period from 0.4% to just 0.1%, providing little indication of its intent to pursue further rate increases. Coupled with the prevailing strong bullish sentiment surrounding the US Dollar (USD), these factors pose obstacles for the Pound Sterling (GBP).
Furthermore, the UK S&P Global/CIPS Manufacturing PMI for September rose to 44.3 from the previous 44.2, in line with expectations.
On the Euro’s side, speculation is rife in the market regarding a potential impasse in policy changes at the European Central Bank (ECB), despite inflation levels surpassing the bank's objective and growing concerns about a potential recession.
Traders and investors are closely monitoring any indications or statements from the ECB to gain insights into the central bank's approach to addressing current economic challenges.
On Monday, Germany's HCOB Manufacturing PMI declined to 39.6 from the previous reading of 39.8, contrary to expectations of it remaining unchanged in September. Meanwhile, the Eurozone's PMI and Unemployment Rate held steady at 43.4 and 6.4%, respectively, as anticipated.
The upcoming week is set to feature a series of speeches from ECB officials, with particular attention likely focused on President Christine Lagarde's address at a monetary policy conference scheduled for Wednesday. These communications are expected to provide further clarity on the ECB's stance and potential policy directions.
Reprinted from FXStreet_id,the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.