0.8336: Euro hits 19-month lows against British Pound despite upbeat Eurozone GDP
- EUR/GBP hits fresh 19-month lows below 0.8340 on track for a 3.15% selloff in a five-week downtrend.
- Eurozone GDP beat expectations in Q3, but the increase in unemployment and high Oil prices keep Euro bulls capped.
- The Pound remains bid with investors bracing for a BoE rate hike next week.
The Euro (EUR) extends losses on Friday as Eurozone macroeconomic data has failed to convince investors, while the British Pound (GBP) rallies across the board with markets pricing in a Bank of England (BoE) rate hike next week. The EUR/GBP pair has hit a fresh 19-month lows at 0.8336, and is on track for a 3.15% selloff in a five-week downtrend.
Preliminary data from Eurostat revealed that the Eurozone’s Gross Domestic Product (GDP) grew 0.4% in the third quarter, below the previous quarter’s 0.6% growth but twice as much as the 0.2% expected. Previously, German GDP numbers also beat expectations, while the French economy contracted against market consensus of a moderate increase.
Investors' optimism about positive Eurozone growth has been offset by the unexpected increase in the Unemployment Rate, which ticked up to 6.5% in September, instead of the 6.4% the market had anticipated.
Beyond that, Oil prices remain near five-month highs, with the barrel of Brent Crude steady above $112.00, posing a significant weight on the region’s economic growth and boosting inflationary risks.
In the UK, focus has shifted to the Bank of England, which meets next week. Recent macroeconomic data revealed that the UK economy keeps growing while inflation remains well above the bank’s target. Against this backdrop, futures markets are nearly fully pricing a 25-basis-points rate hike next week.
Technical Analysis: EUR/GBP nears oversold levels
EUR/GBP trades at 0.8343 at the time of writing, extending its slide within a downward parallel channel and retaining a bearish near-term bias. Momentum indicators endorse the bearish view on the 4-hour chart, but the Relative Strength Index (14) sits near 32, leaning toward oversold territory, which suggests that bears might need to take a pause.
On the downside, a confirmation below Thursday's low at 0.8345 would expose the late March 2025 lows between 0.8315 and 0.8330 ahead of the channel bottom, now around 0.8300.
On the topside, the channel top at 0.8360 is likely to test upside attempts ahead of Wednesday's high, near 0.8385, and the weekly high, just above 0.8400.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Pound Sterling Price Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.20% | -0.40% | -0.46% | -0.27% | -0.13% | -0.29% | -0.39% | |
| EUR | 0.20% | -0.20% | -0.18% | -0.03% | 0.08% | -0.10% | -0.20% | |
| GBP | 0.40% | 0.20% | 0.02% | 0.13% | 0.28% | 0.10% | -0.00% | |
| JPY | 0.46% | 0.18% | -0.02% | 0.13% | 0.26% | 0.09% | -0.01% | |
| CAD | 0.27% | 0.03% | -0.13% | -0.13% | 0.13% | -0.03% | -0.13% | |
| AUD | 0.13% | -0.08% | -0.28% | -0.26% | -0.13% | -0.17% | -0.26% | |
| NZD | 0.29% | 0.10% | -0.10% | -0.09% | 0.03% | 0.17% | -0.09% | |
| CHF | 0.39% | 0.20% | 0.00% | 0.01% | 0.13% | 0.26% | 0.09% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
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