EUR/GBP rises after a 6-day slide

EUR/GBP is rising on Monday, posting the first daily gain since September7. The pair is hovering around 0.8850, up 60 pips from Friday’s close. 

EUR rebounds, GBP losses strength 

Last week, the pound was the best performer boosted by rising expectation of a rate hike from the Bank of England. EUR/GBP lost more than 300 pips and posted the lowest weekly close since July. Today the pound retreated across the board favoring a recovery in the pair. 

During the Asian session, EUR/GBP tested Friday’s low near 0.8775 and then bounced to the upside. It rose above 0.8800 and extended the recovery during the US session. It peaked at 0.8857. 

The pound lost momentum following Mark Carney speech at the IMF Headquarters. He mentioned that any rate hikes were expected to be gradual and limited.

Carney Speech: Any rate hikes are expected to be gradual and limited

Data ahead

Today’s economic data included the final print for August Euro zone CPI that showed not change from the preliminary reading (1.5% y/y). Tomorrow will be the turn of German ZEW expectations, on Thursday of Consumer Confidence data, and on Friday of the PMI flash estimate for September. 

In the UK, the most relevant report will be on Wednesday: the August retail sales report. PM May will deliver a speech on Friday about Brexit.