The EUR/GBP pair is set to close the week with a decline, marking the third consecutive weekly loss. The Euro has weakened against the Pound Sterling, driven by expectations of further ECB interest rate cuts and a stronger UK economy.
The release of the Eurozone’s flash HICP data for August has confirmed a decline in inflationary pressures, strengthening the case for ECB rate cuts. The data also suggests a potential slowdown in the Eurozone economy, with growing concerns about a recession in Germany.
The Pound Sterling has been supported by the Bank of England’s (BoE) cautious stance on interest rate cuts and the improved UK economic outlook. While the BoE is expected to cut rates one more time this year, the pace of easing is likely to be slower than in the Eurozone.
EUR/GBP Technical Outlook
The EUR/GBP pair has shown a bearish trend, with potential for further declines. The pair is trading below key support levels, and a break below the 0.8400 level could signal a continuation of the downward trend.
