FxWirePro: EUR/GBP Daily Outlook

Chart - Courtesy Trading View 

EUR/GBP was trading largely unchanged at 0.8300 at around 12:45 GMT, bias is bearish.

The pair is grinding lower in sloping channel pattern and recovery attempts were rejected at daily cloud.

Hawkish comments from ECB’s Martin Kazaks on Wednesday, who talked about a rate hike as soon as July were largely ignored. 

Data released earlier on Wednesday by Eurostat showed Eurozone’s Industrial Production rebounded in February.

Upbeat data suggested that the recovery in the manufacturing sector is regathering steam, but euro largely unimpressed. 

The industrial output in the bloc arrived at 0.7% MoM vs. a 0.7% increase expected and -0.7% last.

On an annualized basis, the industrial output was up by 2.0% in February versus a 1.5% rise expected and January’s -1.5%.

Money markets are only pricing in 30 bps worth of BoE tightening at its upcoming meeting. Further, the IMF yesterday cut UK 2023 growth outlook to 1.2% from 2.3%.

Technical bias remains bearish with upside being capped at daily cloud. Scope for test of channel base at 0.8215.