EUR/GBP forecast for November 12,2020
Yesterday was a bad day for the Euro; It lost in all fields, while today the situation is different, and it is slowly reducing the losses it made yesterday. The EUR/GBP pair is most affected today by the UK’s news regarding Gross Domestic Product (GDP), Manufacturing Production, and Industrial Production.
The results were all below the forecast, and the pound began to lose strength. A little later, ours is also waiting for news and European Industrial Production.
Uncertainties related to Brexit and a possible postponement of the agreement for later, perhaps in early December, softer macro data from the UK continued to undermine the British pound.
The euro benefited from weaker demand in US dollars and managed to start the European session a little more optimistically. The pound remained on the defensive in response to comments from the governor, Andrew Bailey of the Bank of England, who said they did not see much need to control the yield curve and refrained from giving some time to adopt negative interest rates.
The fall in the FTSE 100 index of major stocks from the London Stock Exchange in early trading on Thursday raised suspicions that the global rotation from impulse stocks to value stocks caused by hopes in coronavirus vaccines was only short-lived, and the risk returned by an increase in new coronavirus infections.
This diminishes hopes that progress will be sustained, especially as Brexit negotiations are at a crucial stage, UK policy is worrying following the resignation of a senior adviser to the prime minister and the latest GDP figures below forecast. Today we have a meeting of the Eurogroup, so expect a day of statements from various officials, both political and economic.
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