fbpx

Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Forex Market: EUR/GBP daily forecast

During Friday’s trading session EUR/GBP traded within the range of 0.7924-0.7984 and closed at 0.7978, gaining 0.63% on a daily basis.

At 6:12 GMT today EUR/GBP was down 0.09% for the day to trade at 0.7973. The pair touched a daily low at 0.7971 at 5:25 GMT.

Fundamental view

Euro zone

Confidence among investors in the Euro zone was probably lower during the current month, with the corresponding index coming in at a reading of 9.0. In July it stood at 10.1. The index is based on results from the SENTIX survey, one of the most prominent surveys, reflecting investors’ opinion in Germany. It encompasses 2 800 respondents, with 510 of them being institutional investors. Respondents present their expectations regarding ten different markets for a period of one and six months. Readings above zero indicate that respondents were predominantly optimistic, while readings below zero show pessimism. Higher than expected readings would provide support to the common currency. The official result is expected at 8:30 GMT.

At the same time, the annualized index of producer prices (PPI) in the Euro zone probably reached -1.0% in June, according to the median estimate by experts, from -1.0% in May. This index reflects the change in prices of products, sold by manufacturers during the respective period. The PPI differs from the CPI, which measures the change in prices from consumer’s perspective, due to subsidies, taxes and distribution costs of different types of manufacturers in the region. In case producers are forced to pay more for goods and services, they are more likely to pass these higher costs to the end consumer. Therefore, the PPI is considered as a leading indicator of consumer inflation. Lower than expected producer prices would have a bearish effect on the euro. Eurostat is to release the official report at 9:00 GMT.

United Kingdom

Activity in United Kingdom’s sector of construction probably slowed down in July, with the corresponding PMI coming in at 62.0, down from 62.6 in June, that was the strongest since January. The index is based on a survey, encompassing managers of companies, operating in construction sector. They are asked about their estimate regarding current business conditions (new orders, output, employment, demand in the future). Values above the key level of 50.0 signify that activity in the sector has expanded. Higher than projected readings would certainly heighten the appeal of the pound. The Chartered Institute of Purchasing and Supply (CIPS) is to announce the official reading at 8:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7962. In case EUR/GBP manages to breach the first resistance level at 0.8000, it will probably continue up to test 0.8022. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8060.

If EUR/GBP manages to breach the first key support at 0.7940, it will probably continue to slide and test 0.7902. With this second key support broken, the movement to the downside will probably continue to 0.7880.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News