EURGBP breaks above 0.8800 as Pound weakens

• Pound under pressure at the beginning of an important week.
• EURGBP approached last week high near 0.8830.
• Consolidation above 0.8830 could open the doors for 0.8900.

The Pound is among the worst performers across the G10 space on Monday. EURGBP broke above 0.8800 and climbed to 0.8813, reaching the highest level since Thursday.

EURGBP gains momentum 

The cross remains near the top supported by a weaker Pound across the board. While GBPUSD trades at daily lows under 1.1730, EURUSD is moving toward daily highs above 1.0330.

Economic data from the Eurozone showed an increase in Industrial Production of 0.9% in September, above the 0.5% expected. On Tuesday, employment and GDP data are due.

In the UK, employment data will be reported Tuesday. The unemployment rate is expected to remain steady at 3.5%. On Wednesday, October CPI is due, with the headline expected to rise to 10.7% from 10.1%.

The key event will be the Autumn Budget statement on Thursday. “Markets await Chancellor Hunt’s Autumn Statement on Thursday. Hunt faces a delicate balance of trying to shore up UK policy credibility to reassure markets and the GBP, whilst making spending cuts and revenue enhancements that do not weaken already soft support for the Conservatives even further”, said analysts at Scotiabank.

Technical levels