Forex Market: EUR/GBP daily outlook

During yesterday’s trading session EUR/GBP traded within the range of 0.8362-0.8400 and closed at 0.8393.

At 8:07 GMT today EUR/GBP was losing 0.13% for the day to trade at 0.8387. The pair touched a session low at 0.8379 at 8:00 GMT.

Fundamental view

The number of jobless claims in the United Kingdom probably dropped by 25 000 in February compared to the prior month, when claims were 27 600 less. The claimant count rate probably fell to 3.5% last month from 3.6% in January. The official numbers are to be released at 9:30 GMT. If claims decreased more than projected, this will heighten the appeal of the British pound.

The Office for National Statistics (ONS) is scheduled to announce the rate of unemployment in the country, evaluated in accordance with methodology by the International Labor Organization (ILO), also at 9:30 GMT. The median estimate pointed that the rate will remain unchanged at 7.2% during the three months through January. Bank of England has used this indicator as a key threshold, which provided clues over the timing of a possible raise in borrowing costs. However, it was replaced by a wider set of indicators. A drop in unemployment will certainly boost the pound.

At 9:30 GMT Bank of England is to release the minutes of its policy meeting on March 6th. All nine members of the Monetary Policy Committee (MPC) probably voted unanimously in favor of keeping the benchmark interest rate and the monthly scale of stimulus unchanged. Upon the release of the minutes market volatility is usually high.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/GBP manages to breach the first resistance level at 0.8408, it will probably continue up to test 0.8423. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8446.

If EUR/GBP manages to breach the first key support at 0.8370, it will probably continue to slide and test 0.8347. With this second key support broken, the movement to the downside will probably continue to 0.8332.