EUR/GBP flirts with weekly low, around 0.8800 mark on stronger UK CPI report.

EUR/GBP comes under some selling pressure following the release of the UK inflation figures.The stronger UK CPI print reaffirms bets for more BoE rate hikes and boosts the British Pound.The EUR/GBP cross meets with some supply during the early European session on Wednesday and drops to a fresh weekly low, around the 0.8810 region in reaction to stronger UK consumer inflation figures.

The British Pound strengthens a bit after the UK Office for National Statistics (ONS) reported that the headline UK CPI eased less than expected, to a 10.1% YoY rate in March from the 10.4% recorded in the previous month. Furthermore, the Core CPI, which excludes volatile food and energy items, held steady at 6.2% YoY during the reported month, beating expectations for a slide to 6.0%. This comes on the back of the stronger UK wage growth data on Tuesday and should keep pressure on the Bank of England (BoE) to raise interest rates further, which, in turn, is seen dragging the EUR/GBP cross lower.

The shared currency’s relative underperformance could further be attributed to the fact that the European Central Bank (ECB) policymakers have left the door open to a downshift in the pace of interest rate hikes. In fact, ECB member Martins Kazaks said on Monday that the central bank might opt for a 25 bps hike at the next meeting in May. This further contributes to a mildly softer tone surrounding the EUR/GBP cross. That said, the lack of any strong follow-through selling warrants some caution for aggressive bearish traders and before positioning for any further intraday depreciating move, at least for now.

Market participants now look forward to the release of the final Eurozone CPI print, which might influence the Euro and provide some impetus to the EUR/GBP cross. Apart from this, traders will take cues from the BoE’s Quarterly Bulletin for the central bank’s view on the state of the UK economy. This might further contribute to producing short-term trading opportunities ahead of BoE MPC Member Catherine Mann’s scheduled speech.

GBP/USD climbs toward 1.2450 on hot UK CPI

GBP/USD has gathered bullish momentum and advanced toward 1.2450 area early Wednesday. The data from the UK revealed that the annual core CPI stayed unchanged at 6.2% in March, compared to the market expectation of 6%, and provided a boost to Pound Sterling.


EUR/USD drops to test 1.0950 as USD regains footing

EUR/USD has come under renewed selling pressure to test 1.0950 in early Europe. The US Dollar is finding fresh demand amid a negative shift in the market sentiment and a sharp uptick in the US Treasury bond yields. ECB-speak in focus. 


Gold to resume its downside journey amid hawkish Fed bets

Gold price is demonstrating a sheer contraction in volatility after a recovery move from $1,980.00. The yellow metal is struggling to extend its recovery as the US Dollar Index (DXY) has rebounded firmly after defending the critical support of 101.65.

<a href=”;c=503446″><img src=”; width=”120″ height=”600″ /></a>