The EURGBP currency pair is below the EMA200 and EMA50 in the 4H timeframe and is moving in its descending channel. In case of an upward correction due to economic data this week, we can see a supply zone and resell within that zone with a suitable risk reward. Reaching the demand zone of this currency pair will lead to scalp buying opportunities.
The UK energy regulator has approved a £2 billion funding package to build a high-voltage “electricity superhighway” beneath the North Sea. This project, known as the “Eastern Green Link 1,” involves laying 196 kilometers of cable to transfer wind power from Scotland to northern England. The initiative is expected to supply electricity to approximately two million homes.
Rachel Reeves, the UK’s finance minister, stated that the government aims to achieve broad and resilient economic growth. She also reaffirmed the Bank of England’s target of maintaining a 2% inflation rate.
Andrew Bailey, Governor of the Bank of England, noted that inflation in the services sector remains above levels compatible with the inflation target. He stressed the need for close monitoring of this sector, as it reflects labor market developments. Bailey further mentioned that a gradual approach to easing monetary policy restrictions would help manage inflation-related risks more effectively.
Meanwhile, the European Commission has warned of heightened risks in its economic outlook due to the war in Ukraine, tensions in the Middle East, and protectionist trade policies. The Commission estimates Germany’s GDP growth to rise by 0.7% in 2025, down from an earlier forecast of 1.0%. Additionally, public debt in the Eurozone is expected to increase from 89.1% in 2024 to 90.0% by 2026. Inflation rates are projected at 2.4% for 2024, 2% for 2025, and 1.9% for 2026.
A Bloomberg survey revealed that economists now believe Germany may face a second consecutive year of declining output. Analysts expect Germany’s GDP to shrink by 0.1% in 2024 following a 0.3% contraction in 2023.A month ago, predictions still pointed to an economic slowdown only for this year.
Fabio Panetta, a member of the European Central Bank (ECB), stated that persistent weakness in domestic demand might drive inflation below 2%. He suggested that the ECB should consider shifting toward a neutral or even expansionary monetary policy. Panetta noted that the Eurozone economy remains weak, with no turning point visible in the manufacturing sector. He emphasized the need for the ECB to adopt a forward-looking approach, as excessive tightening of current monetary policies is no longer necessary.
Robert Müller, another ECB official, remarked that there is no need for larger-scale measures at this time. He also hinted at the possibility of a 25-basis-point rate cut in December.
The UK energy regulator has approved a £2 billion funding package to build a high-voltage “electricity superhighway” beneath the North Sea. This project, known as the “Eastern Green Link 1,” involves laying 196 kilometers of cable to transfer wind power from Scotland to northern England. The initiative is expected to supply electricity to approximately two million homes.
Rachel Reeves, the UK’s finance minister, stated that the government aims to achieve broad and resilient economic growth. She also reaffirmed the Bank of England’s target of maintaining a 2% inflation rate.
Andrew Bailey, Governor of the Bank of England, noted that inflation in the services sector remains above levels compatible with the inflation target. He stressed the need for close monitoring of this sector, as it reflects labor market developments. Bailey further mentioned that a gradual approach to easing monetary policy restrictions would help manage inflation-related risks more effectively.
Meanwhile, the European Commission has warned of heightened risks in its economic outlook due to the war in Ukraine, tensions in the Middle East, and protectionist trade policies. The Commission estimates Germany’s GDP growth to rise by 0.7% in 2025, down from an earlier forecast of 1.0%. Additionally, public debt in the Eurozone is expected to increase from 89.1% in 2024 to 90.0% by 2026. Inflation rates are projected at 2.4% for 2024, 2% for 2025, and 1.9% for 2026.
A Bloomberg survey revealed that economists now believe Germany may face a second consecutive year of declining output. Analysts expect Germany’s GDP to shrink by 0.1% in 2024 following a 0.3% contraction in 2023.A month ago, predictions still pointed to an economic slowdown only for this year.
Fabio Panetta, a member of the European Central Bank (ECB), stated that persistent weakness in domestic demand might drive inflation below 2%. He suggested that the ECB should consider shifting toward a neutral or even expansionary monetary policy. Panetta noted that the Eurozone economy remains weak, with no turning point visible in the manufacturing sector. He emphasized the need for the ECB to adopt a forward-looking approach, as excessive tightening of current monetary policies is no longer necessary.
Robert Müller, another ECB official, remarked that there is no need for larger-scale measures at this time. He also hinted at the possibility of a 25-basis-point rate cut in December.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.