EUR/GBP Weekly Analysis (week of 04-08/01)

Advertiser Disclaimer
Top8forexbrokers would like to remind you that the data contained in this website is not necessarily real-time nor accurate.Prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Top8forexbrokers does not bear any responsibility for any trading losses you might incur as a result of using this data.
Top8forexbrokers or anyone involved with Top8forexbrokers will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Weekly Summary

Euro/Pound is trading around 0.9009 after starting the week at zero (up 0.%) .

This move comes while some more positive signs for Euro/Pound are out as the United Kingdom Composite PMI released earlier shows an improvement to 50.4 from the preceding date of 49, but falls short of the projected 50.7.

On the other hand, Euro Zone Consumer Price Index fell short of the -0.2 projection to -0.3 and marks no progress over the previous figure of -0.3. The United Kingdom Construction PMI published yesterday at 9:30 AM came out at 54.6, falling short of the 55 projections and continuing its decline from the previous 54.7 figure.

At the same time, Euro Zone Unemployment Rate came out at 8.3, above the estimate of 8.5. This is also a step forward from the previous data of 8.4.

EUR/CAD lost 57 pips from the start of the session, trading at 1.5502 levels.

At the same time, pound/yen is trading around 140.92.

Jan. 8, 2021

Euro/Pound is down 31 pips (0.35%), trading around 0.9009

(23:21) GMT

This downslide might be related to financial indicators data published earlier as the Euro Zone Consumer Price Index fell short of the -0.2 projections, at -0.3 and marks no progress over the previous figure of -0.3. The United Kingdom Construction PMI published yesterday at 9:30 AM came out at 54.6, falling short of the 55 projections and continuing its decline from the previous 54.7 figure.

Meanwhile, data for the Euro Zone Unemployment Rate released today at 10:00 AM came out at 8.3, beating projections of 8.5 and showing improvement over the preceding figure of 8.4.

Taking a wider perspective, performance of these other symbols usually suggests a setback for Euro/Pound as EUR/CAD lost 57 pips from the start of the session, trading at 1.5502 levels.

Also today , the pound/yen is trading around 140.92.

The lower Bollinger band was at 0.8939, indicating a positive correction might be next. Overall, looking at the technical analysis landscape, it seems Euro/Pound might reverse course and start pointing upward in the short term.

Jan. 7, 2021

Euro/Pound is down 13 pips (0.15%), trading around 0.904

(22:21) GMT

This downslide might be related to financial indicators data published earlier as the Euro Zone Consumer Price Index fell short of the -0.2 projections, at -0.3 and marks no progress over the previous figure of -0.3. The United Kingdom Construction PMI published yesterday at 9:30 AM came out at 54.6, falling short of the 55 projections and continuing its decline from the previous 54.7 figure.

On the flip side, United Kingdom Composite PMI released earlier shows an improvement to 50.4 from the preceding data of 49, but falls short of the projected 50.7.

Taking a wider perspective, performance of these other symbols usually suggests a setback for Euro/Pound as Pound/Yen is trading around 140.82 after starting the session at 140.18 (down 0.46%). EUR/CAD dropped 0.42% (66 pips) to 1.5557.

The upper Bollinger band is at 0.915 and the lower is 0.8933.

The market will keep its eye on the following upcoming macroeconomics indicators: Today at 7:45 AM, data for French Consumer Spending will be released, with an expected decline to -15.1 from the preceding figure of 3.7. German Industrial Production is projected to come out at 0.7 – worse than previous data of 3.2, Data will be released today at 7:00 AM. The Euro Zone Unemployment Rate looks to be getting worse at an expected 8.5 while the preceding figure was 8.4, New data will be released today at 10:00 AM.

Jan. 6, 2021

Euro/Pound moves up to 0.905 after starting the day at 0.9024 (up 0.29%)

(20:21) GMT

The Euro/Pound green move comes while some more encouraging signs are out as the United Kingdom Composite PMI released earlier shows an improvement to 50.4 from the preceding date of 49, but falls short of the projected 50.7.

On the other hand, German Unemployment Change released yesterday is better than expected at -37000 but down from preceding data of -40000 according to new data.

At the same time, German Retail Sales released yesterday was better than expected at 1.9 but down from the preceding data of 2.6 according to new data.

A look at other markets shows behavior that usually indicates a green move for the Euro/Pound as EUR/CAD is up 0.33% (51 pips) to 1.563 levels.

At the same time, pound/yen is trading around 140.33 (up 44 pips).

The upper Bollinger band is at 0.915 and the lower is 0.8933.

The market is looking forward to the United Kingdom's Construction PMI projected to outperform last figure with 55, while it previously stood at 54.7, data will be released today at 9:30 AM. The Euro Zone ECB Monetary Policy Statement will be released today at 12:30 PM. Euro Zone Retail Sales look to be getting worse with an expected -3.4 while the preceding figure was 1.5, New data will be released today at 10:00 AM.

Jan. 5, 2021

Euro/Pound holds at 0.9021

(21:21) GMT

EUR/GBP trading at 0.9021 with no clear-cut direction, ranging between 0.9054 and 0.9012.

This limbo state for Euro/Pound is reflected by market data published as Data for Germany Unemployment Change released yesterday at 8:55 AM is better than expected at -37000, but worse than the previous figure of -40000. German Retail Sales released yesterday at 7:00 AM was better than expected at 1.9 but down from the preceding data of 2.6 according to new data. The Euro Zone Manufacturing PMI fell short of the 55.5 projections, at 55.2 and continued its downward trajectory from the previous figure of 55.5.

Other markets showed mixed performance, as at 1.6983, EUR/NZD is down to its lowest value in 10 months. EUR/CAD is eyeing the 1.5429 support line

The Euro/Pound resistance level is at 0.9166. At 0.9047, Euro/Pound made an initial breakout above the 21 day Simple Moving Average. The upper Bollinger band is at 0.9161 and the lower is 0.893. Overall, looking at the technical analysis landscape, it seems the Euro/Pound might be pointing upward in the short term.

Data to be released later might clear up some of the fog for Euro/Pound as the United Kingdom's Composite PMI figure is projected at 50.7 while it previously stood at 50.7, data will be released today at 9:30 AM. United Kingdom BoE Gov Bailey's speech is scheduled today at 2:00 PM. Spain Services PMI is projected to outperform the last figure with 45, while it previously stood at 39.5, data will be released today at 8:15 AM.

Jan. 4, 2021

Euro/Pound made its largest single-day jump (87 pips) since December 2020

(21:21) GMT

Starting at 0.8934 EUR/GBP trading at 0.9022 after making its biggest single-day jump (87 pips) since December 2020

At the same time, Euro Zone Manufacturing PMI fell short of the 55.5 projections, at 55.2 and continued its downward trajectory from the previous figure of 55.5.

The nearest resistance level is at 0.9166. At 0.901, Euro/Pound made an initial breakout above the 200 day Simple Moving Average. The upper Bollinger band is at 0.9161 and the lower is 0.8929. Overall, looking at the technical analysis landscape, it seems Euro/Pound likely to continue pointing upward in the short term.

In the meantime, EUR/NZD fell to 1.6982, hitting a 10 month low. A new 2 year high for pound/dollar at 1.3684. After a 4 month hiatus, pound/yen is back at 141.31 levels. EUR/CAD approaches the closest resistance line at 1.5742 and is now only 157 pips away, crossing it might suggest further gains are ahead.

The market is looking forward to Germany. Retail Sales look to be getting worse with an expected -2 while the preceding figure was 2.6, New data will be released today at 7:00 AM. Germany's Unemployment Rate figure is projected at 6.1 while it previously stood at 6.1, data will be released today at 8:55 AM. Spain Unemployment Change is expected today at 8:00 AM.

Euro/Pound social media highlights: