EUR/GBP Remains Above 0.8450, Potentially Reinforced By German Data -

EUR/GBP Remains Above 0.8450, Potentially Reinforced By German Data

Aug 26, 2024Jeremy ParkinsonFinance, No picture0

Image Source: Unsplash

EUR/GBP holds ground after the release of positive German figures on Monday.

German IFO – Business Climate came in at 86.6 for August, exceeding the expected reading of 86.5.

BoE Governor Bailey suggested the possibility of accelerating rate cuts during his speech at the Jackson Hole symposium.

EUR/GBP attempts to halt its three-day losing streak following key economic data from Germany released on Monday, trading around 0.8470 during Monday’s European session.The German IFO Business Climate index for August came in at 86.6, slightly above the market expectations of 86.5. However, this was a decrease from the previous month’s reading of 87.0. Meanwhile, the IFO Current Assessment matched expectations with a reading of 86.5, down from 87.1 in the previous month.On Friday, European Central Bank (ECB) Governing Council member Olli Rehn suggested that the recent drop in inflation, combined with economic weakness in the Eurozone, strengthens the argument for lowering borrowing costs next month, Bloomberg reports.The sluggish growth outlook in Europe, especially in the manufacturing sector, further reinforces the case for a rate cut in September. Additionally, markets are assessing how the increasing expectations of Federal Reserve rate cuts might impact borrowing costs in Europe.At the Jackson Hole symposium, Bank of England (BoE) Governor Andrew Bailey hinted at the possibility of faster rate cuts, pointing to a quicker-than-expected decrease in inflation. However, Bailey emphasized the need for caution until inflation consistently meets targets, following last month’s rate reduction from 5.25% to 5.0%.However, speculation that the BoE’s policy-easing cycle may proceed more slowly than those of other major central banks is lending some support to the Pound Sterling (GBP).
Euro PRICE TodayThe table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the New Zealand Dollar.

USD EUR GBP JPY CAD AUD NZD CHF USD 0.08% 0.16% -0.29% -0.04% 0.25% 0.22% -0.19% EUR -0.08% 0.02% -0.34% -0.11% 0.08% 0.15% -0.25% GBP -0.16% -0.02% -0.47% -0.19% 0.05% 0.06% -0.34% JPY 0.29% 0.34% 0.47% 0.25% 0.60% 0.71% 0.17% CAD 0.04% 0.11% 0.19% -0.25% 0.28% 0.29% -0.16% AUD -0.25% -0.08% -0.05% -0.60% -0.28% 0.06% -0.33% NZD -0.22% -0.15% -0.06% -0.71% -0.29% -0.06% -0.41% CHF 0.19% 0.25% 0.34% -0.17% 0.16% 0.33% 0.41%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).More By This Author:USD/CHF Holds Mild Losses Near 0.8500, Eyes On Fed’s Powell At Jackson Hole Symposium GBP/JPY Price Forecast: Falls To Near 191.00, Testing The Lower Boundary Of The Channel Silver Price Forecast: XAG/USD Rises Above $29.00 Due To Dovish Mood Surrounding The Fed