Euro continues to lose ground against the Sterling

As the Euro declines in value relative to the Pound Sterling, the Euro/GBP is testing 0.8640. Consumer confidence in the eurozone does not change, but the business outlook does.

The Euro is expected to lose ground to the Pound Sterling, setting up the pair for a fifth day of losses in a row. The headline annualised Harmonised Index of Consumer Prices (HICP) inflation is predicted to drop from 2.9% to 2.2% for the year through November, while the most recent HICP inflation estimate for the Eurozone is expected to be 3.9%.

It is anticipated that the October unemployment rate in the Eurozone will remain at 6.5%. After a strong break from 0.8680, the EUR/GBP is now moving away from the 200-day Simple Moving Average (SMA) and reaching new lows for November.