GBP/EUR Outlook by Hifx 26 February 2018.
In Europe, the flash estimate PMIs showed business growth remained robust, but the pace of growth lost some momentum as the composite PMI dipped to 57.5, from 58.8 in January Inflation eased to 1.3% in January as estimated and the minutes from the ECB’s last meeting showed they felt inflation was still too soft to think about tweaking their forward guidance GBPEUR’s recent range bound scenario continued last week with the currency oscillating within the range without any clear direction. This scenario is likely to continue in the coming weeks however we do feel the overall bias is for GBP to move higher eventually with a move above the key 1.1500 level the first sign the move is underway. Until such time we would suggest that any short term buyers look to buy Euro’s around the 1.1400/1.1500 level and alternatively Euro sellers wait for any move back towards the 1.1100 level
