S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
- EUR/GBP stands above the top of the previous range, at 0.8360, but is failing to find acceptance above 0.8370.
- Market sentiment remains positive, but a mild rebound in Oil prices is weighing on the Euro.
- German final HICP data confirmed that inflation pressures moderated in October.
The Euro (EUR) trades practically flat against the British Pound (GBP) on Wednesday, as the rebound in Oil prices is offsetting the positive risk sentiment. The EUR/GBP pair holds above the top of the previous trading range, at 0.8360 so far, but remains unable to find acceptance above 0.8370.
Crude Oil prices have bounced up from Tuesday’s lows, with Brent Oil returning above the $90 level, as traders start to grow wary about the lack of progress in the negotiations to reach a peace deal in the Middle East.
On the macroeconomic front, the German Harmonized Index of Consumer Prices (HICP), released earlier on Wednesday showed that inflationary pressures eased moderately in October. The Final HICP confirmed preliminary estimates of a 0.1% monthly contraction and the 2.8% year-on-year growth in October following 0.6% and 3.3% respective increases in September.
In the UK, the calendar is thin on Wednesday, with investors on the lookout for Thursday’s Q3 Gross Domestic Product (GDP) release. Markets are bracing for moderate economic growth, boosted by a strong manufacturing sector that would cement hopes for another BoE rate kike in the first months of 2027.
Technical Analysis: Indicators show growing bullish momentum
EUR/GBP trades at 0.8367, holding a mild bullish near-term tone as it holds just above a previous resistance area at 0.8360. The Relative Strength Index (14) leans into positive territory, while the Moving Average Convergence Divergence (MACD) remains slightly positive, together suggesting that buyers retain the upper hand as long as the pair defends this immediate floor.
Bulls, however, are struggling to find follow-through above 0.8370. Further up, they might also find some resistance at the October 28 high around 0.8380, ahead of the October 26 high in the 0.8400 area
A bearish reaction below the mentioned support around 0.8360 (October 30, November 2 highs), on the contrary, would expose the November 6 and 9 lows, near 0.8335, ahead of the year-to-date lows, near 0.8320.
