Forex
Pound Drifts Lower as Oil Prices Slide
The Pound Sterling (GBP) is likely to drift lower against the Euro (EUR) this week due to a decline in oil prices, which will erode its yield support. The GBP/EUR exchange rate rose on Friday but may fall back as oil prices dropped to a ten-day low at $102.70.
The 100-day moving average is flattening out and could act as a pivot point for the market, drawing it back towards this level. This means that any decline in the GBP/EUR rate will likely be limited.
The UK composite PMI surveys on Wednesday are also crucial to watch, with forecasts suggesting an increase to 52.7 from 52.5. A strong reading could help the Pound hold its ground, but a miss would make it harder for the GBP to resist the downward pressure.