Euro Steadies Against GBP Amid Divergence and Rejection
The Euro (EUR) has steadied against the British Pound (GBP) on Friday, trading in a tight range above 0.8560 during the early European session.
This comes after another rejection at the 0.8680 area, with the daily chart showing a bearish engulfing candle on Thursday, indicating a potential deeper downside correction.
Mixed German data has failed to provide significant support to the pair, with industrial production beating expectations but trade balance falling short of market consensus.
The divergence between the European Central Bank (ECB) and the Bank of England's (BoE) monetary policy committee is weighing on the Pound, with FX Strategists at Rabobank arguing that there is scope for downside pressure on the pound as the summer draws to a close.