EUR / GBP Prices, charts, and analysis
- Bets on rate hikes will increase in response to central bank comments.
- EUR/GBP We are approaching the fresh 18-month lows.
NS According to two members of the central bank’s interest rate setting committee, the Bank of England may need to raise interest rates faster than previously expected due to rising inflation in the UK. Talking to The Yorkshire Post, BoE Governor Andrew Bailey said he was worried about current levels of inflation.
“Unfortunately, looking at the previous forecast, I think that (inflation) will be even higher. As Bank of England Governor, I hope I’m not there. Governor Bailey said the country was” very very Admitting that they are experiencing a “rare era,” they add that they have a challenging job, “it’s obviously very damaging, so in a sense you need to prevent things from being permanently embedded. there is”.
Governor Bailey wasn’t the only MPC member to warn of high rates over the weekend, but known hawk Michael Sanders suggested that “it’s appropriate that the market has moved to a much faster tightening path than before.” .. Talking to The Daily Telegraph, Sanders warned that interest rates could be raised by the end of the year to stop rising inflation.
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The next Bank of England meeting is scheduled for November 4, along with the latest monetary policy report, which is now even more important if the central bank triggers a rate hike this year. The market has already signaled a 0.15bp rate hike in December and will see further gains next year.
The pound sterling has risen across the board due to the continued weakness of various other currencies. British pound / yen Bent above 154.00 and printed new weekly highs. On the other hand, Sterling U.S. dollar And the euro. Looking at EUR / GBP, the pair appears to be set to test resistances just below 0.8450. Below, the EUR / GBP will return to the lows seen in February 2020. The daily chart remains bearish, but it is oversold. This current mixed bias is confirmed by its current retail position (see below).
EUR / GBP Daily Price Chart – October 11, 2021
According to retailer data, 78.59% of traders are net long and the ratio of long to short traders is 3.67 to 1.Netlong traders are 0.50% less than yesterday, 56.86% higher than last week, The number of net short traders is 1.90% more than yesterday, 21.82% decrease from last week..
We usually disagree with the sentiment of the crowd, and the fact that traders are netlong suggests EUR /.GBP Prices may continue to fall. Positioning isn’t net-long since yesterday, but it’s been net-long since last week.The combination of current emotions and recent changes gives us Further mixed EUR / GBP trading bias..
What is your view Sterling – Bullish or bearish ?? Please let us know using the form at the end of this work or contact the author on Twitter. @ nickcawley1..
Pound sterling (GBP) rises as Bank of England warns of high interest rates
Source link Pound sterling (GBP) rises as Bank of England warns of high interest rates