Anna 
During Tuesday’s European trading hours, the EUR/GBP pair managed to pare intraday losses following disappointing housing data from the United Kingdom (UK). However, the cross currency pair remains in negative territory, trading around 0.8550.
In March, the non-seasonally adjusted Nationwide Housing Prices in the UK witnessed a year-over-year increase of 1.6%, falling short of market expectations of a 2.4% rise and trailing the previous figure of 1.2%. Moreover, the monthly index indicated a decrease of 0.2%, contrary to the anticipated increase of 0.3% and the previous increase of 0.7%. Traders are closely monitoring key indicators such as the S&P Global PMI and Halifax House Prices data to evaluate the UK economic landscape.
Bank of England (BoE) Governor Andrew Bailey’s comments suggesting market forecasts for three quarter-point rate reductions in 2024 are reasonable have fueled expectations for interest rate cuts in June. This sentiment has exerted downward pressure on the Pound Sterling (GBP).
Meanwhile, Germany’s HCOB Manufacturing PMI rose to 41.9 in March, from the previous reading of 41.6. Traders are also awaiting Consumer Price Index (CPI) data from Germany, scheduled to be released later in the day. Additionally, Wednesday brings Harmonized Index of Consumer Prices (HICP) data from the Eurozone.
The Euro has faced challenges following dovish remarks from European Central Bank (ECB) members, particularly ECB Governing Council member Yannis Stournaras’s proposal of four interest rate cuts in 2024, amounting to a cumulative reduction of 100 basis points (bps) by the year’s end. Additionally, ECB policymaker Robert Holzmann indicated that interest rate cuts are probable, contingent upon the evolution of wage and price dynamics by June. These remarks have undermined the EUR/GBP cross.
