GBPEUR reaches a 9-month high
Daily Currency Update
GBPEUR reached 1.1710 a 9-month high as the European Central Bank (ECB) is expected while the Bank of England (BoE) may be ready to maintain its tightening cycle. The Pound Sterling has also been boosted by the indication that the UK economy is likely to avoid a recession whereas the Eurozone unexpectedly entered a technical recession last week after GDP data was revised.Likewise, GBPUSD reached a 1-month high at 1.2597 this morning after market sentiment improved as the US is now looking unlikely to enter a recession and a likely pause in tightening from the Federal Reserve.
Key Movers
Markets await UK jobs data tomorrow morning as well as US CPI tomorrow afternoon. Market expectations for UK 3-month unemployment is that it will post at 4.0% compared to 3.9% previously. US CPI however, is expected to improve with YoY CPI expected to come out at 4.1% vs. 4.9% prior.Currently markets are expected a 25 bps hike from the ECB next week followed by another at the next meeting. Compared to a potential total 100 bps hike from the BoE over the remainder of their tightening cycle.
Expected Ranges
- GBP/USD: 1.1615 - 1.1725 ▼
- GBP/EUR: 1.0700 - 1.0820 ▲
- EUR/USD: 1.2500 - 1.2630 ▲