The EURGBP trading pair dropped yesterday’s after two disappointing data from the Eurozone and Spain caused the euro to fall. The pair appeared to recover midway through the session, however, euro bulls prevailed, causing the pair to dive.
The EURGBP exchange rate fell 0.58% or 0.0051 points in yesterday’s trading. The EURGBP pair extended its fall from £0.8922 to £0.8848 in Thursday’s sessions.
Yesterday, Spain’s services PMI and Eurozone market PMI release, and the result failed to reach forecasts.
The disappointing data stirred concerns over the health of the Eurozone economy. European Central Bank policymakers were also upset by the recent data.
The Spanish services PMI went from 54.3 to 53.3, failing to reach expectations of 53.8. Meanwhile, the eurozone market PMI barely went over the 50 marks, falling to 50.1 from 51.9.
Aside from that, Germany has also slashed its growth forecasts to 0.5% in 2019, and 1.1% next year. Germany is currently the largest economy in the Eurozone, and with that forecast, traders have now become more worried.
With those figures, experts now believe that the eurozone economy will only grow by 0.1% for this quarter. In that case, the eurozone’s economic growth will fail to reach the 0.2% growth forecast.
Win Against the USD
The two most prominent currencies in the Atlantic are gradually showing signs of exhaustion; first, British pound traders are getting more and more anxious about the upcoming Brexit. While the single currency continues to falter because of the ailing eurozone economy.
But despite the EURGBP run, both the euro and pound won against the greenback in yesterday’s trading. The two currencies took advantage of the US dollar, pushing it to the losing end on Thursday.
The EURUSD exchange rate went up by 0.29% or 0.0032 points yesterday. The trading pair reached levels between $1.0940 to $1.0999 in sessions.