Bearish
EUR/GBP hits six-week low at 0.8540 amid UK GDP revision and BoE rate hike expectations.
The EUR/GBP pair declined to a six-week low of 0.8540 following an upward revision of UK GDP data, which bolstered expectations for a Bank of England interest rate hike. This development has intensified selling pressure on the euro against the pound.
Key points
- UK GDP growth revised up to 0.5% in Q2, supporting BoE rate hike expectations.
- EUR/GBP breaks below the ascending channel from late July, indicating bearish momentum.
- Rabobank forecasts EUR/GBP to remain rangebound, citing limited EUR upside and GBP caution ahead of the October 28 budget.
Sources
AI-generated from public news sources. Not financial advice.
