- The offered tone surrounding the shared currency exerted some pressure on EUR/GBP.
- Weaker than expected German GDP report did little to provide any meaningful impetus.
- Investors now eye prelim German inflation figures for some intraday trading opportunities.
The euro weakened a bit during the early European session and pushed the EUR/GBP cross to daily lows, around mid-0.9000s post-German GDP report.
Following a brief consolidation through the early part of the trading action on Thursday, the cross met with some fresh supply and the dropped back closer to over one-week lows set in the previous day. The downtick was exclusively sponsored by a mildly offered tone surrounding the shared currency, which lost some additional ground following the release of the weaker-than-expected German GDP report.
According to the preliminary report published by Destatis on Thursday, the Eurozone’s largest economy contracted by 10.1% during the second quarter of 2020. The reading was worse than consensus estimates pointing to a fall of 9.0% and the 2.0% decline recorded in the previous quarter. The data failed to provide any impetus to the common currency or extend support to the EUR/GBP cross.
On the other hand, the British pound was seen consolidating its recent gains and did little to influence the cross. Given that the shared currency has been acting as an exclusive driver of the EUR/GBP pair’s momentum on Thursday, investors now look forward to the release of prelim German Consumer Inflation figures to grab some meaningful trading opportunities.
Technical levels to watch
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