- Eurozone Retail Sales, speech from ECB’s Guindos can direct near-term moves amid lack of major data/events elsewhere.
- Pessimism surrounding the UK economy, Brexit has been weighing on the British Pound (GBP) off-late.
Although pessimism surrounding the Brexit and latest doubts over the UK economy spread by the Bank of England (BOE) Governor Mark Carney continues to portray the EUR/GBP pair’s upside, traders await fresh catalysts to again challenge the key 0.9000 mark while witnessing 0.8966 as a quote ahead of the European markets open on Thursday.
In addition to the British Pound’s (GBP) weakness, recently improved German statistics also play their role to please the bulls.
Absence of the US traders from the market and lack of data/event elsewhere highlights the Eurozone economic calendar as it carriers the May month Retail Sales and a speech from the European Central Bank (ECB) Vice President Luis De Guindos.
While the Retail Sales is expected to increase to 1.6% and 0.3% over yearly and MoM basis versus 1.5% and -0.4% respective priors, ECB’s De Guindos might continue following the central bank’s broader dovish outlook.
On the other hand, UK politics has been on an active mode as the Prime Minister (PM) hopefuls continue trying to convince Tory voters that they are the best to deliver less harmful no-deal Brexit.
Technical Analysis
Overbought levels of 14-day relative strength index (RSI) might again drag the quote from 0.9000 psychological magnet. With this, 0.8950 and the current month low near 0.8920 could please sellers. However, an upside clearance of 0.9000 might not refrain from flashing January 11 high of 0.9062.
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