- The pound recovers more ground in the G10.
- EUR/GBP has the worst day in months.
The EUR/GBP It continued to fall during the American session and reached the lowest level in almost a week at 0.8836. It is hovering around 0.8850, down almost 90 points, and is posting the worst performance in months as the pound extends its rally.
The surprise announcement from the Bank of England on Wednesday helped gilts and also the pound, which is broadly rising on Thursday. British Prime Minister Liz Truss today defended her economic plan amid mounting criticism. The latest events created instability in the Truss administration.
Data published on Thursday showed that the Consumer Price Index in Germany reached 10% in September, the first time in 70 years that it has reached double digits: “The main drivers remain energy and food prices, but prices are also rising faster and faster in most other groups of goods.There is no easing in sight, and the rate of inflation is likely to fall next year only because energy prices are unlikely to return. to rise as strongly as this year, partly due to government intervention. However, underlying price pressure is likely to remain strong,” analysts at Commerzbank note.
Inflation figures do not affect the euro. Markets continue to expect the ECB and BOE to continue raising interest rates. Subsequently, the EUR/GBP continued to fall, while the GBP/SUD climbed back above 1.1000. EUR/USD also hit new all-time highs but rose at a slower pace.
Technical levels
Source: Fx Street
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