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The vast majority of retail client accounts lose money when trading CFDs.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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EURGBP Faces a Cluster of Support Levels

EURGBP is facing a strong cluster of support levels ahead of the 0.8550 level.

The pair faces a busy economic calendar with German inflation data, ZEW economic surveys, and UK employment figures.

EURGBP – Daily Chart 

EURGBP – Daily Chart 

On the daily chart, the pair trades at 0.8590, and the coming days will be key for a breakout or a sharp reversal. 

Britain’s economy returned to growth in October, with activity bouncing back from the impact of another bank holiday for the Queen’s funeral. Despite that, a long recession is still expected. 

The Office for National Statistics said gross domestic product (GDP) for the month rose by 0.5% after a decline of 0.6% in September, which was driven by business closures for the national mourning. Car sales added a boost with a wider recovery in the country’s dominant service sector, while there was strong growth in activity in the health sector. 

The Bank of England said that the country’s economy was probably already in a recession that could last until the end of 2023 after GDP fell by 0.2% in the three months to September. Despite a recovery in October, contractions in November and December could signal a second consecutive quarter of decline—the technical definition of a recession. 

Economists said the latest figures did not change the overall picture of a slowing economy. David Brier, the head of research at the British Chambers of Commerce, said: "Business confidence has been falling dramatically as firms face a wall of higher prices and energy bills, increased taxation, and rising borrowing costs."

On employment, analysts are expecting a better showing than last month’s loss of 52k jobs at -17k. The day will also see a final reading of German inflation, with a reading of 10% forecast. ZEW economic sentiment has been released for the German and Eurozone economies, with both set to improve.

Last Updated: 13/12/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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