- The Sterling is slipping against the Euro, sending the EUR/GBP pair into the high end of a familiar consolidation range.
- A positive reading for German CPI figures today could send the Euro higher once again.
The EUR/GBP has spiked upwards following a drop-off by the Sterling, and the pair has kicked into a two-week high at 0.8837.
The Euro has been on a bullish rise against the Sterling this week, rising as the GBP slumps in broader markets, driven lower by a dovish Bank of England (BoE) yesterday that highlighted Brexit concerns that could impact the UK’s economy if a hard Brexit scenario unfolds. The dovish sentiments pushed GBP bulls back out of the markets, and the Sterling is continuing to fall to the weak side for Thursday.
Thursday brings a slew of data for the Eurozone, beginning with the European Central Bank’s (ECB) latest Economic Bulletin at 08:00 GMT, followed by the European Commission’s Business Climate indicator for June, which is forecast to come in at 1.40 versus the previous reading of 1.45. The key reading for Thursday will be the y/y Germany Harmonized Index of Consumer Prices for June, due at 12:00 GMT and expected to come in at 2.1%, a slight decline from the previous reading of 2.2%.
EUR/GBP Levels to watch
The pair is backing down from 0.8830 as Thursday’s European session gets underway, and May’s high of 0.8840 has formed the upper bound of a recent consolidation range, with the bottom marked in by a rough support level near 0.8725. A bullish break will have to climb over March’s high at 0.8965, while a bearish reversal will see further support from April’s low of 0.8620.
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