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The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
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 Tries To Hold Support For Further Gains

After a recent pullback to the June highs, EURGBP found solid support at the 0.8700 level and is seeking a push higher, the recent spike high is a hard target, and the British and German economic data will determine its outcome.

EURGBP – Daily Chart

eurgbp daily chart-Oct-12-2022-04-35-03-02-AM

The euro is shrugging off better than employment numbers from the UK economy. Markets expected a reading of -155k for new jobs added and a more minor loss of -109k. That was also joined by a lower-than-expected unemployment rate. At 3.5%, the unemployment rate is at its lowest since the 1970s.

However, the numbers were clouded by the fact that fewer UK workers are looking for jobs. The number of people in the country not looking for work rose by 330,000 over the last three months, according to the Office for National Statistics (ONS).

Chancellor Kwasi Kwarteng said the figures “remind us that the fundamentals of the UK economy remain resilient.” The pandemic has changed the landscape of the UK economy, with nearly 1m more people not looking for work since February 2020. Persistent illness has been identified as a drag on economic inactivity.

“Growth in average total pay was six percent, and growth in regular pay was 5.4 percent among employees,” the ONS said. But the impact of inflation is causing real wages to drop, with total pay and regular pay down 2.4 percent and 2.9 percent.

The EURGBP exchange rate now looks to Wednesday and Thursday for direction. UK GDP growth figures into the end of September will lead on Wednesday and Thursday, bringing German inflation. Last month’s inflation in Germany saw a surge to 10%, and further highs would pressure the ECB to start taking bolder action on interest rates.

Sandwiched between those releases is an FOMC minutes release which often has less of an impact on the EURGBP due to it being a Britain v Europe cross.

Last Updated: 12/10/2022

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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