Ella 
The EUR/GBP rebounded on Thursday, paring last Wednesday’s losses to trade above its 200-day moving average (DMA) at 0.8694. As of press time, the EUR/GBP was trading at 0.8715 in Asian markets, up 0.01%.
EUR/GBP gains momentum as geopolitical tensions and dovish Fed comments weigh on the Pound
Market sentiment deteriorated during Thursday’s session, which was bearish for the risk-on GBP, which fell against most of the major currencies. The Euro was supported by escalating conflicts in the Middle East and dovish comments from Federal Reserve Chairman Jerome Powell.
Eurozone economic data was light, with the ZEW Economic Sentiment Index improving, while the latest Eurozone inflation figure of 4.3% suggests that the Harmonized Consumer Price Index is indeed decelerating, as it was above 5% in August. Meanwhile, some officials at the European Central Bank (ECB) switched from hawkish to neutral amid concerns about a possible recession in the European Union. European Central Bank policymakers are following in the footsteps of the Federal Reserve in adopting a data-driven approach to monetary policy.
In the U.K., inflation recently came in at an annualized rate of 6.7%, suggesting that the Bank of England’s job will not be easy. Although the monthly gross domestic product (GDP) rate rose from -0.6% to 0.2%, the risk of stagflation remains.
In the afternoon, there will be no economic data from the Euro-Zone, while UK retail sales are expected to fall to -0.3% on a monthly basis, from 0.4% previously.
