The EUR/GBP pair has declined to a new fortnightly low, driven by a combination of factors including weaker-than-expected Eurozone wage growth data and a stronger Pound Sterling.
The Euro has faced pressure from the expectation of further European Central Bank (ECB) interest rate cuts, despite the recent slowdown in wage growth. The ECB is likely to maintain a cautious approach to monetary policy, considering the ongoing inflationary pressures.
Meanwhile, the Pound Sterling has been supported by the UK’s stronger-than-expected PMI data, suggesting a resilient economy and potential for further interest rate cuts by the Bank of England.
Technical Outlook
The EUR/GBP pair is currently trading below a key support level, indicating a potential for further downside. Traders should monitor the pair’s reaction to the 0.8450 level, which could act as a temporary support or a trigger for a more significant decline.