EUR/GBP saw a bounce on Thursday, crossing the 0.8450 mark after the Bank of England decided to keep rates steady at 5.25%. The European data did not have much impact on the market, with Germany’s Producer Price Index (PPI) showing a decline in May.
Germany’s PPI dropped to 0.0% MoM in May, missing forecasts and signaling a decrease in YoY figures as well. Despite the BoE’s decision to hold rates, concerns about inflation and the labor market continue to weigh on the Sterling. The UK Retail Sales data and PMIs in the EU and UK are expected to provide further insights into the market on Friday.
EUR/GBP’s technical outlook remains bearish, with 0.8460 acting as a key hurdle for bulls. The pair has been struggling for weeks, but a potential recovery could see it reaching the 0.8500 level. Overall, the pair’s momentum remains weak despite recent gains.
Charts:
– EUR/GBP hourly chart
– EUR/GBP daily chart