EURGBP – 4H Chart
EURGBP is looking to find support ahead of the 0.83 level and any gains would target the 0.8450 level again.
Manufacturing and services PMI is released for the eurozone between 4:30pm HKT and 5:30pm.
France’s economy starts the show but its figures are still expected to be around the 46 level, lower than the 50 expansion rate. Germany’s services is expected to grow with a 51.4 reading, but its manufacturing is still lagging with a forecast of 47.7. Eurozone services is expected to be 51, with manufacturing at 48.
It will be a similar situation for the UK economy at 5:30pm HKT with manufacturing expected to be 47.3, with services at 51.2. Any deviation in these numbers could have an effect on the pair into Tuesday.
The British pound has been recovering against the euro, despite the surprise slowdown in UK GDP growth numbers last week. The economy contracted by -0.1% when analysts had expected growth of a similar level.
Markets are now pricing in a rate cut from the ECB in April, with Governing Council member Yannis Stournaras, saying:
“Everything points in the direction of a cut in April. But this is not April. It is still March. We have one month to go, so I cannot tell you that we’re going to cut”.
The data on Monday could add to euro rate cut expectations if PMI data from the eurozone disappoints.
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