empty
30.08.2024 12:01 PM
EUR/GBP: Overview and Analysis

This image is no longer relevant

The EUR/GBP pair is still struggling, continuing its losing streak.

This image is no longer relevant

There's a good chance that the EUR/GBP pair will keep dropping. The British pound is getting a boost from the Bank of England's firm stance on keeping interest rates higher for longer compared to the European Central Bank.

At the Jackson Hole symposium last week, Bank of England Governor Andrew Bailey pointed out that the knock-on effects of inflationary pressures might be less significant than previously thought. He also advised against rushing into further interest rate cuts. Earlier, on August 1, the Bank of England had already cut rates by 25 basis points, bringing them down to 5%. Meanwhile, money markets are expecting another 40 basis point cut by the end of this year.

In the UK, house prices rose by 2.4% year-on-year in August, up from July's 2.1%. This was the sixth straight month of price increases and the biggest jump since December 2022. But in a surprising twist, monthly house prices actually dipped by 0.2% after a 0.3% rise in July, despite market expectations of a 0.3% increase.

Turning to the euro, inflation in the Eurozone slowed even further in August, according to CPI data from Germany and Spain. This slowdown has led to growing expectations that the European Central Bank might cut interest rates, which is putting pressure on the euro and dragging down the EUR/GBP pair.

Carsten Brzeski, Head of Macroeconomics at ING, called the slowdown in inflation great news for the ECB. He pointed out that the combination of an economic slowdown and decreasing inflation provides the perfect backdrop for rate cuts. However, he also cautioned that inflation in the services sector is still a concern.

Today, it's worth keeping an eye on the Eurozone CPI, as it could offer more clues about the health of the Eurozone economy and create new trading opportunities.

From a technical perspective, the indicators suggest that the path of least resistance for the pair remains downward, with oscillators in negative territory and far from oversold levels.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Irina Yanina
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

EUR/USD – Analysis and Forecast

Today, the pair is retreating from its daily high. According to European Commission officials, the EU and the US are close to reaching an agreement that would include 15% tariffs

Irina Yanina 14:00 2025-07-24 UTC+2

USD/JPY – Analysis and Forecast

Today, the pair broke a three-day losing streak, as Japan's domestic political uncertainty, disappointing manufacturing PMI data, and prevailing risk appetite remain key factors limiting the yen's growth

Irina Yanina 13:55 2025-07-24 UTC+2

XAU/USD – Analysis and Forecast

Currently, gold continues to lose ground. Recent news of progress in trade negotiations between the United States and Japan, as well as reports that the US and the European Union

Irina Yanina 12:23 2025-07-24 UTC+2

USD/CHF – Analysis and Forecast

The uncertainty regarding the Federal Reserve's policy is holding back the growth of the U.S. dollar, while trade-related optimism continues to undermine the Swiss franc's status as a safe-haven asset

Irina Yanina 11:43 2025-07-24 UTC+2

Why Isn't the Euro Falling Against the US Dollar? (There Is a Possibility of Limited Downside in EUR/USD and GBP/USD)

The euro continues to show steady growth against the dollar, which may seem irrational at first glance, but there are significant reasons behind this. Let's examine them. Today, the European

Pati Gani 09:47 2025-07-24 UTC+2

The Market Has Made It Clear

The economy remains strong, and U.S. trade deals with other countries are bringing clarity. What could be better for the S&P 500? Perhaps a fireworks display of corporate earnings that

Marek Petkovich 08:57 2025-07-24 UTC+2

What to Pay Attention to on July 24? A Breakdown of Fundamental Events for Beginners

Several macroeconomic reports are scheduled for release on Thursday, but they will all be similar in nature. Business activity indices for the services and manufacturing sectors for July will

Paolo Greco 07:12 2025-07-24 UTC+2

GBP/USD Overview – July 24. Trump's Tariffs: No One Will Be Spared

The GBP/USD currency pair also continued its upward movement on Wednesday, showing no reaction to the signing of a trade agreement with Japan. As we can see, even a form

Paolo Greco 04:02 2025-07-24 UTC+2

EUR/USD Overview – July 24. The Fourth Lucky One!

The EUR/USD currency pair continued its upward movement on Wednesday, and this time even the signing of yet another trade agreement couldn't save the dollar... So, Donald Trump signed

Paolo Greco 04:02 2025-07-24 UTC+2

The Trade Deal and Mike Lee's Lie

In my previous article, I asked: how is it possible that in a country which sees itself as a world leader in almost every area, the president can openly insult

Chin Zhao 00:53 2025-07-24 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.