- EUR/GBP is facing hurdles around 0.8440 as investors await Wednesday’s Germany HICP.
- The German inflation data is likely to remain unchanged at 8.5% annually.
- A vulnerable UK GDP data may weaken the pound bulls ahead.
The EUR/GBP pair struggles to cross the immediate hurdle of 0.8440 in the early Tokyo session. The asset has been broadly auctioning in a range of 0.8410-0.8452 for the past three trading sessions as investors have shifted their focus towards the Germany Harmonized Index of Consumer Prices (HICP) data, which will release on Wednesday. The cross continued its four-day winning streak on Tuesday and will likely extend gains.
A preliminary estimate for the Germany HICP is 8.5%, similar to its prior close on an annual basis. Also, the monthly inflation data is seen unchanged at 0.8%. It is worth noting that Germany is a core member of the European Union (EU) and its inflation data holds significant importance for the eurozone.
No doubt, the Germany HICP is displaying some peak signals. However, this doesn't warrant that the European Central Bank (ECB) won’t go for a rate hike announcement. The ECB has been slowest in elevating interest rates among its Western peers due to regional imbalance after Russia invades Ukraine. Therefore, the rate hike odds are sky-rocketing as inflation is beyond the desired rate.
On the pound front, the Gross Domestic Product (GDP) release holds significant importance. The economic data is expected to plummet to 2.8% vs. 8.7% reported earlier on an annual basis. Apart from that, the UK Office for National Statistics will also report the Industrial Production and Manufacturing Production data; their estimates don’t seem lucrative.
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 holds on to intraday gains after upbeat US data
EUR/USD remains in positive ground on Friday, as profit-taking hit the US Dollar ahead of the weekend. Still, Powell's hawkish shift and upbeat United States data keeps the Greenback on the bullish path.
GBP/USD pressured near weekly lows
GBP/USD failed to retain UK data-inspired gains and trades near its weekly low of 1.2629 heading into the weekend. The US Dollar resumes its advance after correcting extreme overbought conditions against major rivals.
Gold stabilizes after bouncing off 100-day moving average
Gold trades little changed on Friday, holding steady in the $2,560s after making a slight recovery from the two-month lows reached on the previous day. A stronger US Dollar continues to put pressure on Gold since it is mainly priced and traded in the US currency.
Bitcoin to 100k or pullback to 78k?
Bitcoin and Ethereum showed a modest recovery on Friday following Thursday's downturn, yet momentum indicators suggest continuing the decline as signs of bull exhaustion emerge. Ripple is approaching a key resistance level, with a potential rejection likely leading to a decline ahead.
Week ahead: Preliminary November PMIs to catch the market’s attention
With the dust from the US elections slowly settling down, the week is about to reach its end and we have a look at what next week’s calendar has in store for the markets. On the monetary front, a number of policymakers from various central banks are scheduled to speak.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.