[VIDEO] EU inflation data could push EUR/GBP lower
Joe Perry March 1, 2021 8:06 PM
The inflation and central bank contrast between Europe and the UK has been noticeable in EUR/GBP
The flash EU inflation rate is due out during the upcoming European session. Expectation are for 0.9% YoY. Core Inflation YoY is expected at 1.1% in February. This number will be carefully watched as bond yields have been up ticking since the beginning of the year.
The UK had a core inflation rate reading of 1.4% YoY in January. However, the BOE has indicated that they did not mean to imply that they would use negative interest rates at their last meeting.
The inflation and central bank contrast between Europe and the UK has been noticeable in EUR/GBP. The pair pushed aggressively lower into February 24th and formed a hammer candle at horizontal support near 0.8600. Price bounced to resistance on Friday and is waiting for its next catalyst. The Euro area inflation data may be it.
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