- EUR/GBP rises where economic data in the UK misses expectations.
- The gross domestic product in the United Kingdom, low industrial and manufacturing data, raises expectations that England may have to reduce prices more.
- The EUR/GBP husband connects the gains as the bullish momentum supports higher prices.
The British pound (GBP) against the euro (EUR) is decreasing on Friday, following a series of economic data that indicated the weakness of the British economy.
With GDP (GDP), industrial production and manufacturing numbers in loss of expectations, the elevator in the euro/biological army pushed prices above 0.8650 handle at the time of writing this report.
The monthly monthly GDP numbers issued on Friday revealed that the UK economy reduced 0.1 % in May, and the loss of expectations by expanding 0.1 %.
Meanwhile, industrial production and manufacturing numbers in May decreased by 0.9 % and 1.0 %, respectively, both of which are less than expectations.
As economic momentum stumbles, data reinforces expectations that England can turn towards a more country’s position, which increases the possibility of lowering prices, pressing GBP and raising EUR/GBP.
This primary weakness in the UK data has provided a new EUR/GBP incentive, with a pair over the RERRERRERDING 23.6 % in Fribunchi in the direction of ascension to 0.8634. This step strengthens bullish feelings with the continued medium -moving height for 10 days, and the RSI index ascends to 66, approaches the excessive purchase area but has not yet indicated fatigue.
On the upward trend, there can be a continuous near over the psychological barrier 0.8670 paths to re -test April height near 0.8738, with further extension to the resistance area 0.8750-0.8780.
The weak UK data is likely to add, or expand the spread of the return, or any incentive from England Bank of England to the gathering.
In contrast, failure to retain more than 0.8634 can withdraw towards initial support at 0.8622 (moving average for 10 days), followed by the Fibonacci level 38.2 % at 0.8576. A break below can display a 50 -day moving average near 0.8494 and convert the near -range look to neutral.
Euro Plan/GBP Daily
Stering questions and answers to the pound
The British pound (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most trading foreign unit (FX) in the world, as it represents 12 % of all transactions, with an average of 630 billion dollars a day, according to 2022 data.
Their main trading pairs are GBP/USD, also known as “Cable”, which represents 11 % of FX, GBP/JPY, or “dragon” as is known by merchants (3 %), and EUR/GBP (2 %). The pound was released by the Bank of England (Bank of England).
The only most important factor that affects the value of the British pound is the monetary policy decided by the Bank of England. The Bank of England is based on its decisions on whether it has achieved its primary goal of “stability in prices” – a fixed inflation rate of about 2 %. Its primary performance to achieve this is to adjust interest rates.
When inflation is very high, the Bank of England will try to make interest by raising interest rates, making it more expensive for people and companies to reach credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to stop their money.
When inflation decreases significantly, economic growth slows down. In this scenario, the Bank of England will consider reducing interest rates to licensing credit so that companies borrow more to invest in growth generation projects.
Data affects the health of the economy and can affect the value of the pound sterling. Indicators such as gross domestic product, manufacturing, services, and employment can affect the GBP direction.
The strong economy is useful for sterling. Not only attracts more foreign investments, but it may encourage the Bank of England to set interest rates, which will enhance the GBP directly. Otherwise, if the economic data is weak, it is possible that the pound sterling will fall.
Issuing another important data for the British pound is the balance of trade. This indicator measures the difference between what a country gains from its exports and what it spends on imports during a certain period.
If a country produces very desirable exports, its currency will benefit from the additional demand resulting from foreign buyers who seek to buy these goods. Therefore, the positive and positive trade balance enhances the currency and vice versa to achieve a negative balance.
Source: https://www.fxstreet.com/news/eur-gbp-climbs-as-weak-uk-data-fules-boe-Speculation-202507111557