EURGBP Remains Under Market Pressure

EURGBP remains under market pressure and is hanging around the 0.8625 level as of today, Monday. What’s got investors on the edge of their seats is the upcoming release of two important bits of information. This includes the Eurozone Gross Domestic Product (GDP) for the second quarter and the UK inflation data.

In the Asian session on this fine Monday, the EUR/GBP cross had a bit of a struggle trying to get its groove on. However, it managed to stay above that 0.8600 market zone. All eyes are on those Eurozone GDP figures, which are expected to show a growth rate of 0.6% on a yearly basis and 0.5% on a monthly basis. These numbers will give us some pretty critical insights into how the Eurozone economy is holding up.

What’s next on the agenda?

The European Central Bank (ECB) just put out its monthly Economic Bulletin. They’re a tad worried about inflation and economic growth in the Eurozone. The report says that inflation is going to stick around at a high level for quite a while. Also, the outlook for both economic growth and inflation is uncertain.

The UK National Statistics Office recently made an announcement that sent shockwaves through the markets. The country’s GDP had grown by 0.5% in June. The figure was higher than the 0.2% that everyone had previously expected. To make matters even better, Industrial Production and Manufacturing output also made impressive gains in June. This is increasing the chances of the Bank of England (BoE) raising interest rates.

The news of the UK’s GDP growth in June is a positive sign for the country’s economy. The upcoming releases from the Eurozone and UK will provide further clarity into the current state of affairs. It will be interesting to see how the markets react to these releases. This will determine whether or not the BoE will decide to raise interest rates in the future.

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