The Euro has given back recent gains against the British Pound, slipping below the 0.8700 level on Thursday, as traders assess the implications of weaker-than-expected UK inflation data.
Euro Retreats After Soft UK Inflation Data
After advancing on Wednesday, EUR/GBP reversed course and fell back under 0.8700, as UK CPI data came in softer than forecast. Headline inflation rose 3.8% year-on-year in September, below the 4.0% consensus estimate, fueling expectations that the Bank of England (BoE) could cut interest rates again before year-end.
The Pound initially weakened across the board following the data, but the broader move in EUR/GBP has remained limited within a 70-pip range, oscillating between 0.8665 and 0.8730 since early October.
Technical Outlook: Symmetrical Wedge Taking Shape
A look at the 4-hour chart shows EUR/GBP consolidating into a gradually tightening symmetrical wedge pattern centered around the 0.8700 mark — a formation that often precedes a continuation move, potentially to the downside in this case.
- Support levels: Initial support sits between the wedge base near 0.8670 and October 8 lows at 0.8655. A confirmed break below this zone would expose the September 11 and 15 lows at 0.8635, with a measured target near 0.8620.
- Resistance levels: On the upside, resistance is seen between 0.8715 and 0.8730, a region that has repeatedly capped advances this month. A break above this zone would shift focus toward the year-to-date high near 0.8750.
Euro Performance Today
The Euro is showing mixed performance across major pairs, trading strongest against the Japanese Yen but softer versus the U.S. Dollar and commodity-linked currencies such as the AUD and NZD.
| Base Currency | USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|---|---|---|---|---|---|---|---|
| EUR | -0.10% | — | -0.05% | 0.25% | -0.10% | -0.37% | -0.26% | 0.06% |
The heat map shows percentage changes of major currencies against each other. The base currency is listed on the left column, and the quote currency is on the top row.
