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Important Notice - Fraud awareness
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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 vs. UK Employment and EU GDP

EURGBP could have some volatility for traders on Tuesday with the release of UK employment and EU GDP numbers.

Analysts expect an additional 40k jobs to be added to the British jobs market.

EURGBP – Daily Chart

EURGBP –Daily Chart

EURGBP has seen resistance holding around the 0.89 level, and the first support is ahead at the 0.88 level. 

The British pound is heading for a sixth-consecutive day of gains despite some disappointing data on Monday. The UK avoided recession at the end of last year. Still, companies remain pessimistic about hiring as output falls. 

The latest Business Trends Report from BDO, the accountancy group, has said that business optimism stagnated at the start of the year. For only the third time in six months, all four of the Indices tracked by the report - Output, Optimism, Employment, and Inflation – fell. 

The BDO survey covers over 4,000 companies and saw a sharp decline in growth last month. The BDO Output Index, which follows economic growth, fell for a fourth-straight month. The index lost 3.45 points to 89.15, below the critical 95 level, which marks stagnation. 

The drop in output was driven by falling consumer demand in the services sector, which is the majority of the UK economy. The BDO said the cost-of-living crisis “weakened consumer spending and demand across the services sector.”

Business optimism remained effectively static, BDO reports. Service sector firms were pessimistic, but optimism among manufacturing businesses rose thanks to waning input price pressures. 

The UK employment release on Tuesday is expected to show an additional 40k jobs added to the economy. Still, the unemployment rate is expected to stay stuck at 3.7%. 

The European economy will also see economic data release with a second look at European GDP figures. The Q4 GDP numbers for the UK are expected to drop to 0.1% from 0.3%, while the yearly growth number is expected to drop from 2.3% to 1.9%. The eurozone has raised its growth forecasts and now predicts the European Union will avoid a recession this year, as the fall in gas prices has helped the economy.

Last Updated: 14/02/2023

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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