EUR/GBP: Eurozone Interest Rate Decision (2 June 14:45 GMT +3)

The interest rate of the Eurozone remains on very low (0% at the moment). Looks like the monetary policy designed to boost inflation did not bring expected results. Now delaying the rate hike any further will not benefit the Eurozone economy.

If the interest rate remains the same, it will have a negative impact on EUR. Additionally, press-conference of the head of European Central Bank Mario Draghi will be very important.

Apart from the interest rate decision traders should pay extra attention on the economic reports that are related to the CPI of Eurozone. CPI and Unemployment Rate data will be published on May 31st, 12:00 GMT +3:

..Producer Price Index will be published on June 2nd at 12:00 GMT +3:

..Retail Sales data will be published on June 3rd, 12:00 GMT +3:

CPI data is still very poor and if there are no improvements it will have a negative impact on European currency.

But there are difficulties in the UK economy as well. Soon there will be “Brexit” referendum and some experts believe that UK leaving EU is a possible scenario. British Pound is under high pressure due to such uncertainty.

EURGBP chart:

There is a downward trend On EURGBP D1 chart and the indicator of technical analysis “Parabolic SAR” proves it. What is more, the lower line of Bollinger Band is broken regularly and after that there is a minor correction and a further downward rate movement on a price chart.

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