EUR/GBP snaps three-day losing streak in Asia

EUR/GBP snapped a three-day losing streak after BOE’s Vlieghe played down rate hike talk. The cross jumped to a session high of 0.8625 levels.

BOE’s Vlieghe said the rates need not rise in response to rising inflation. Economists say the rise in inflation is more due to cost push factors and the BOE would be forced to raise rates only if it sees the second round effects kick-in.

Eyes Eurozone PMI

The preliminary Eurozone PMI reading due today is expected to show the pace of expansion in the manufacturing and service sector activity remained steady in March. However, the data could be ignored by the markets, unless the actual number is significantly higher/lower than the estimates. Moreover, the focus remains on politics.

EUR/GBP Technical Levels

A break above 0.8648 (5-DMA) would expose 0.8678 (10-DMA), above which 0.87 (zero figure) could be put to test. On the other hand, a breakdown of support at 0.8605 (previous day’s low) would open doors for a sell-off to 0.8553 (Feb 20 high) and 0.8530 (Feb 14 high).