EUR/GBP remains below 0.8450, downside seems limited due to less dovish ECB

출처 Fxstreet
  • EUR/GBP may appreciate as higher Eurozone inflation has bolstered chances of the ECB adopting a cautious approach to rate cuts.
  • The ECB has emphasized that inflationary pressures remain high, driven mainly by wage growth.
  • The UK’s Office for Business Responsibility has raised its 2024 inflation forecast to 2.5%, up from March estimates of 2.2%.

EUR/GBP inches lower after two days of gains, trading around 0.8430 during the early European hours on Friday. This downside of the EUR/GBP cross could be limited as unexpected increase in Eurozone inflation has bolstered expectations that the European Central Bank (ECB) will maintain a cautious approach to rate cuts, steering clear of significant reductions.

The preliminary Eurozone Harmonized Index of Consumer Prices increased to 2.0% year-over-year in October, up from the previous 1.7% reading and surpassing forecasts of 1.9%. The core inflation rate held steady at 2.7% year-over-year. This rise in inflation is supported by stronger-than-anticipated economic growth, with the Eurozone economy expanding by 0.4% quarter-on-quarter in Q3, twice the growth seen in Q2 and exceeding predictions of 0.2%.

The ECB has highlighted that inflationary pressures remain elevated, primarily due to wage growth. In its recent October meeting, the ECB reaffirmed its commitment to a "data-dependent and meeting-by-meeting" strategy for future policy decisions.

The Pound Sterling (GBP) lost ground since the UK Labour government’s first budget announced £40 billion in tax hikes aimed at reducing public finance gaps and bolstering public services, as reported by CNBC.

The UK’s Office for Business Responsibility (OCR) has revised its 2024 inflation forecast upward to 2.5%, from the previous estimate of 2.2% in March. This adjustment has also led traders to anticipate fewer interest rate cuts by the Bank of England (BoE).

Interest rates FAQs

Interest rates are charged by financial institutions on loans to borrowers and are paid as interest to savers and depositors. They are influenced by base lending rates, which are set by central banks in response to changes in the economy. Central banks normally have a mandate to ensure price stability, which in most cases means targeting a core inflation rate of around 2%. If inflation falls below target the central bank may cut base lending rates, with a view to stimulating lending and boosting the economy. If inflation rises substantially above 2% it normally results in the central bank raising base lending rates in an attempt to lower inflation.

Higher interest rates generally help strengthen a country’s currency as they make it a more attractive place for global investors to park their money.

Higher interest rates overall weigh on the price of Gold because they increase the opportunity cost of holding Gold instead of investing in an interest-bearing asset or placing cash in the bank. If interest rates are high that usually pushes up the price of the US Dollar (USD), and since Gold is priced in Dollars, this has the effect of lowering the price of Gold.

The Fed funds rate is the overnight rate at which US banks lend to each other. It is the oft-quoted headline rate set by the Federal Reserve at its FOMC meetings. It is set as a range, for example 4.75%-5.00%, though the upper limit (in that case 5.00%) is the quoted figure. Market expectations for future Fed funds rate are tracked by the CME FedWatch tool, which shapes how many financial markets behave in anticipation of future Federal Reserve monetary policy decisions.

면책 조항: 정보 제공 목적으로만 사용됩니다. 과거 성과가 미래 결과를 보장하지 않습니다.
placeholder
10만 달러 향해 가는 비트코인, 함께 주목할만한 투자 종목은?Investing.com – 비트코인 가격이 사상 최고치를 돌파하며 10달러 돌파를 눈앞에 두고 있다. 미국을 '세계의 암호화폐 수도'로 만들겠다는 의지를 밝힌 트럼프가 재선에 성공하면서, 규제 완화에 대한 기대감이 비트코인을 비롯한 암호화폐 가격 상승을 이끌고 있다. 트럼프 재선 이후 비트코인 가격은 사상 최고치를 경신하며 투자자들의 관심을 끌고 있다.블
저자  Investing
어제 05: 54
Investing.com – 비트코인 가격이 사상 최고치를 돌파하며 10달러 돌파를 눈앞에 두고 있다. 미국을 '세계의 암호화폐 수도'로 만들겠다는 의지를 밝힌 트럼프가 재선에 성공하면서, 규제 완화에 대한 기대감이 비트코인을 비롯한 암호화폐 가격 상승을 이끌고 있다. 트럼프 재선 이후 비트코인 가격은 사상 최고치를 경신하며 투자자들의 관심을 끌고 있다.블
placeholder
비트코인, 이더리움, 리플 가격 전망: SEC 의장 겐슬러 사임 소식에 BTC $10만 근접비트코인(BTC), SEC 의장 겐슬러 사임 소식 후 $99,299 역대 최고가 기록 – $10만 돌파 눈앞.
저자  Investing
어제 06: 10
비트코인(BTC), SEC 의장 겐슬러 사임 소식 후 $99,299 역대 최고가 기록 – $10만 돌파 눈앞.
placeholder
금 가격, 지정학적 긴장 속 2주 최고치 근접 – $2,700 목표금 가격(XAU/USD), 금요일 5일 연속 상승세 이어가며 아시아 세션 중 $2,690~2,691 부근의 2주 최고치 근접.
저자  FXStreet
어제 06: 33
금 가격(XAU/USD), 금요일 5일 연속 상승세 이어가며 아시아 세션 중 $2,690~2,691 부근의 2주 최고치 근접.
placeholder
은 가격 전망: 안전자산 수요로 XAG/USD $31.00 근처 반등은 가격(XAG/USD), 최근 손실 회복하며 금요일 아시아 시간대에 트로이 온스당 약 $31.00에서 거래.
저자  FXStreet
어제 06: 37
은 가격(XAG/USD), 최근 손실 회복하며 금요일 아시아 시간대에 트로이 온스당 약 $31.00에서 거래.
placeholder
리플, 연중 최고치 기록 – XRP 강세론자들 $1.96의 3년 최고치 목표리플(XRP), 금요일 약 10% 추가 상승하며 연중 최고치 $1.43 기록 – 2021년 5월 중순 이후 최고 수준 도달.
저자  FXStreet
어제 08: 28
리플(XRP), 금요일 약 10% 추가 상승하며 연중 최고치 $1.43 기록 – 2021년 5월 중순 이후 최고 수준 도달.
goTop
quote