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Cross Pullback Deepens, Signalling Deeper Near-Term Weakness

  • The pullback in EURGBP has deepened today, extending the correction lower as both today's German IFO release as well as the ECB's bank lending survey works against the single currency - as well as peak ECB policy pricing.
  • This works against the short-term uptrend, with the break of both the 20-day and 50-day EMAs signalling a stronger reversal, opening 0.8564 initially ahead of 0.8504, the key support.
  • ECB decision the focus ahead on Thursday, but risk events possibly more notable for the cross next week: Flash Eurozone CPI on Monday, followed by the contentious BoE decision three days later on Thursday.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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