After a significant decline in the euro against the pound on Thursday, it fell to0.8576Nearby, due to the market's belief that the European economy is slowing down and bets that the European Central Bank will hold still after raising interest rates on Thursday, the pound followed the decline of the euro.
OandaSenior Market Analyst for the AmericasEdward MoyaAs consumer resilience gradually weakens, Wall Street seems satisfied with the risk of the Federal Reserve raising interest rates again. Although the economic growth in the United States remains strong, the outlook for Europe remains pessimistic as the risk of stagflation increases. In addition, due to8Strong monthly wage growth momentum for the Bank of England9The monetary policy decision of the month laid a hawkish tone, and the pound hit a new low in four months. Although the market hopes that the Bank of England's hawkish interest rate decision will resolve its policy differences with the Federal Reserve, the pound still fell significantly. Due to the Bank of England's restrictive interest rate policy stance, the UK economy is facing various troubles, such as strong wage growth and a slowdown in labor market demand. Due to the deteriorating demand environment, overall output is shrinking, and the outlook for the UK economy is becoming fragile. The likelihood of a technical recession in the UK economic report is higher as the Bank of England is already preparing to further raise interest rates.
In terms of yesterday's financial event data, the European Central BankECBAnnouncement of the Eurozone9Unexpected increase in monthly interest rate changes compared to expectations25Bps to4%-4.75%Achieve the tenth consecutive interest rate hike.
From the upward direction, the upper suppression(Upper resistance) 0.8570,0.8610; From the downward direction, the lower support0.8530。
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