EUR/GBP holds at 0.8358 amid a broader bearish trend, with Brent oil prices down 20% from recent highs providing relief to the Eurozone.
Brent Oil has dropped about 20% from last week's highs and has been hovering just above the $90 level over the last few days, its lowest prices since early September. The article cites this decline as a driver of Euro strength, reflecting continued pressure on crude prices.
The pair is consolidating at 0.8358 after bouncing from 0.8320, capped below 0.8370, with the broader bearish trend intact after October's more than 3% plunge. UK Q3 GDP at 0.7% (1.9% yearly) met expectations with muted Pound impact, while ECB rate-hike expectations for December 17 are already priced in, limiting directional drivers.
Falling Oil prices, with Brent down about 20% from last week's highs and hovering just above $90, provide relief to Eurozone economies and have drawn some support for the Euro. Markets meanwhile keep expectations of a 25 basis point ECB hike on December 17, which Lagarde is unlikely to alter on Thursday.
UK Q3 GDP grew 0.7% (1.9% yearly), meeting expectations, with Industrial Production and services output beating forecasts, yet the impact on the Pound has been muted. Today's heat map shows Sterling was the strongest against the Australian Dollar but slightly weaker against most majors.
The EUR/GBP pair is consolidating at 0.8358, supported by lower oil prices while remaining capped below 0.8370. Despite UK Q3 GDP growth of 0.7% meeting expectations, the Pound's reaction remains muted as markets look toward the ECB's expected 25 basis point rate hike on December 17.
About 20% from last week's highs, leaving it just above $90, its lowest level since early September.
Upside is capped below 0.8370, with 0.8380 and the 0.8400 area as next hurdles; support sits at 0.8350 and then the 0.8335 area.
No, the article describes the broader bearish trend as intact despite the current consolidation above 0.8350.
Lower Oil prices, which relieve Eurozone economies, and expectations that the ECB will hike rates by 25 basis points on December 17.
The reaction was muted, as GDP met expectations with 0.7% quarterly growth and 1.9% yearly growth.