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EUR/GBP moves higher for the 2nd day in a row today (Monday). Also, it is now holding to moderate in-day profits during the opening hours of the European session. The pair is now positioned beyond the mid-0.8700s however lacks any follow-through buying confidence. The pair keeps attracting some assistance from bets for an increased policy tightening by the ECB (European Central Bank).
At the same time, the GBP is undermined by the poor economic outlook in the United Kingdom. The National Institute of Economic and Social Research anticipates the United Kingdom’s GDP growth to be lifeless during the fourth quarter. They also pointed out that the danger of a contraction stays very high. Subsequently, this is offering some support to EUR/GBP.
More Information About GBP/USD Market Moving Happenings
Also, the possibility of additional interest rate increases by the Bank of England served as a push to the GBP. Besides this the moderate United State dollar recovery from an approximately 3-months depth applies some force on the EUR. Consequently, this restricts any meaningful upwards price move for the EUR/GBP in the meantime.
Investors and traders alike, will continue to monitor the Bank of England’s Monetary policy statement coming up on Wednesday. This will play a huge part in affecting the short-term market mood concerning GBP. Subsequently, it will as well dictate the coming leg of a directional move for the EURGBP. As of now, price may consolidate while there are no relevant market-influencing economic news from the Eurozone and the United Kingdom.
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