Euro-pound tests 83p again: consolidation or continuation?As against the dollar, the euro has weakened in its pair with the pound too recently, but the downtrend here has been active since August. There seems to be some potential for further losses since there’s no evidence of selling saturation currently and volume is higher here than for euro-dollar compared to the average of each.
However, second and subsequent tests of important areas are usually less likely to break through. A move below 82p would be an eight-year low: since 82-83p has been tested many times unsuccessfully since December 2016, a breakout lower in 2024 is unfavourable unless there’s a big shift in sentiment or the overall picture from economic data.
British inflation for September was 1.7%, the same as the eurozone’s, and it doesn’t seem likely to push back up significantly over the next few months. Sooner or later, the Bank of England is likely to start its own extended cycle of loosening. When that happens, there’ll be less pressure on the euro here.
These opinions are personal to the writer; they do not reflect those of Exness.
