- EUR/GBP oscillates around the 0.8604–24 region in a narrow trading band.
- The German Harmonized Index of Consumer Prices (HICP) came in at 6.5%, as expected.
- The Bank of England (BoE) policymaker said interest rates were expected to remain high for a longer period.
The EUR/GBP pair oscillates in a narrow range around 0.8620 heading into the early European session on Tuesday. Market players await the UK Gross Domestic Product (GDP) Q2 for fresh impetus. The growth rate is expected to grow by 0.2% on a yearly basis.
The latest data from Destatis showed on Tuesday that the German Harmonized Index of Consumer Price (HICP) came in at 6.5%, matching the market expectations. Earlier this week, the Eurozone Sentix Investor Confidence improved from -22.5 in July to -18.9 in August, versus the market consensus of -23.4.
Sentix Managing Director Patrick Hussy said that the Eurozone economy is still in recession. As a result, there can be no delight in this development. Nevertheless, the European Central Bank's (ECB) peak rate speculations were sparked by the global rating agency Fitch Ratings, which impacted the Euro against its rivals.
On the other hand, the Bank of England (BoE) chief economist, Huw Pill, stated on Friday that interest rates were expected to remain high for a longer period. He added that the central bank will be more data-dependent, and policymakers will respond as the economy and the data evolve.
It's worth noting that the Bank of England (BoE) raised interest rates by 25 basis points (bps) to a 15-year high of 5.25% from 5% in its August policy meeting on Thursday. Markets anticipated that the BoE would likely hike two additional rates by the end of the year as inflation remains high. However, the aggressive tightening policy by the BoE fuels concern about the negative impact on the UK economy and exerts pressure on the Pound Sterling.
Looking ahead, market participants will closely watch the UK Q2 Gross Domestic Product (GDP) on Friday. The data could significantly impact the US Dollar and give a clear direction to the EUR/GBP cross.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD falls toward 1.1100 ahead of EU inflation data
EUR/USD has come under renewed selling pressure, eyeing 1.1100 in the European session on Tuesday. The pair loses further ground, as the US Dollar extends recovery gains while the Euro remains wary of a large ECB rate cut in October. Key EU inflation data eyed.
GBP/USD extends losses below 1.3350 ahead of US ISM PMI
GBP/USD extends losses toward 1.3300 in the European trading hours on Tuesday. Fed Chair Powell's less dovish remarks and a cautious mood keep the US Dollar underpinned ahead of US ISM Manufacturing PMI, JOLTS Job Openings and Fedsepak.
Gold price sticks to modest intraday gains, remains below record peak touched last week
Gold price (XAU/USD) regains positive traction on Tuesday and for now, seems to have stalled a two-day-old corrective slide from the all-time peak touched last week.
Three reasons why SUI could continue its ongoing rally
Sui is extending its gains, trading at $1.9 at the start of the new month after a sharp rise last month. This bullish momentum could continue, driven by a new all-time high in Total Value Locked, rising open interest, and an uptick in daily active addresses.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.