EURGBP EUR/GBP
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- -0.00517-0.61%
EUR/GBP News
EUR/GBP Price Forecast: Reaches Crossroads After Completing Abc Move and Pulling Back
Express News | Mitsubishi UFJ: The Bank of England may cut interest rates in November, but may not do so in December.
United Kingdom's manufacturing sector started the fourth quarter uncertainly. Cost inflation easing may provide growth space for policymakers.
November 1st, Global Intelligence Director Rob Dobson of Standard & Poor's stated: "The United Kingdom's manufacturing industry began the last quarter of the year on uncertain footing, as speculation on government policies before the budget led to a widely reported caution in investment and spending. Domestic headwinds, coupled with ongoing losses in export business, resulted in a comprehensive contraction in new employment levels for the first time since April. As a result, output growth has nearly stagnated. Overall PMI fell below the neutral level of 50.0, with business optimism only slightly higher than the nine-month low point in September, which also signals
United Kingdom's manufacturing PMI final value for October is 49.9, lower than expected.
November 1st of Glonhui｜United Kingdom's October manufacturing PMI final value is 49.9, expected 50.3, previous value 50.3.
Express News | After the budget, the British pound weakened and the market remained cautious about the Bank of England cutting interest rates.
Moody's: The United Kingdom's budget constitutes a new fiscal challenge and is not beneficial to economic growth.
According to the Financial Times on November 1st, Moody's warned on Friday that British Chancellor of the Exchequer Rishi Sunak's plan to increase borrowing after modifying Britain's fiscal rules poses an 'additional challenge' to public finances. Moody's stated that in the assessment of the first budget of the Labour government, Sunak has only left himself limited room to absorb unexpected shocks, while still complying with her new fiscal regulations. British Chancellor of the Exchequer Rishi Sunak announced a budget on Wednesday, raising taxes by over £40 billion while increasing borrowing to fund additional daily spending and government investments. Moody's said: 'In our view, the increase in borrowing...'
Nationwide: UK Annual House Price Growth Softens to 2.4% in October
United Kingdom interest rate cut expectations are under pressure, the British pound is expected to rise to 1.34 if it breaks through 1.30 in the short term.
Investors are selling British bonds and pounds, indicating concerns about the Labour government's expenditure and tax extravagance once again. Ballinger Group forex analyst Kyle Chapman said: "As the sale of UK government bonds intensifies after the budget, the pound has fallen to a two-month low. Following revelations that Reeves' borrowing plan exceeded expectations, bond investors continue to sell British government bonds." On Thursday, the pound against the dollar briefly fell to a near one-and-a-half-month low of 1.2743, currently slightly rebounding, trading around 1.2890. XTB Research Director Kathleen
Market Talk Roundup: Eurozone Inflation Rises, But ECB Still Expected to Cut Rates
EUR/GBP Price Forecast: Bounces off Multi-year Lows, Risk of Trend Reversal
Express News | Economists: The UK budget may extend the process of the Bank of England's fight against inflation.
British pound continued its decline, with the exchange rate against the US dollar hitting the lowest level since August.
On October 31st, Sterling continued its earlier decline against the US dollar to its lowest level since August last year. GBP/USD briefly dropped 0.6% to 1.2886, the lowest since August 16th. EUR/GBP briefly rose 0.6% to 0.84217, the highest since October 3rd.
Express News | Citi Macro: Rising inflation in the eurozone may not deter the European Central Bank from accelerating interest rate cuts.
UBS Group: Due to the prospect of moderate interest rate cuts by the Bank of England, the British pound may further increase.
On October 31, UBS Group global wealth management analysts Patrick Ernst and Constantin Bolz stated that the British pound is on the rise against the US dollar and is expected to reverse the decline in October. UBS Group predicts that the Bank of England will only cut interest rates once this year. Compared to other countries, the United Kingdom's interest rates are relatively high, which should be favorable for the British pound. It is expected that by mid-2025, GBP/USD will rise to 1.38. In the short term, if GBP/USD rises above 1.30, it could potentially rise to 1.34.
Eurozone Inflation up to 2% in October as Unemployment Hits New Record Low
Express News | Ing Groep: Wage pressures in the eurozone have not yet abated.
USD Slips as Data Lift EUR – Scotiabank
Euro-area Flash Inflation: Back to Target – Nordea
Eurozone inflation accelerated in October, with the harmonized CPI up 2% year-on-year, exceeding expectations.
Today's slightly higher-than-expected inflation data, combined with yesterday's release of economic data in europe that exceeded expectations, has led investors to already scale back bets on a larger interest rate cut by the European Central Bank in 2024.
Although inflation in the euro area is higher than expected, it has already met the European Central Bank's target.
On October 31st, the inflation rate in the eurozone decreased faster than expected, reaching the target of the European Central Bank, and supporting the argument for gradually lowering interest rates. A slight decrease in energy costs is the main driving force behind the decline in inflation. The core inflation rate, which is closely watched, unexpectedly stabilized at 2.7%, while food prices rose faster. These data will support European Central Bank officials' warnings against significantly cutting interest rates to boost the weak economy in the euro area. Yesterday's eurozone economic growth data showed that the eurozone economy is more stable, and after Germany avoided an economic recession, investors have reduced their expectations for the European Central Bank today.