EUR/GBP under pressure post-data

• Dovish ECB Monetary Policy Meeting Accounts’report sends the euro lower.

• Bank of England President Carney is set to speak at 19:00 GMT.

The EUR/GBP is trading at around 0.8676 down 0.55 % on Thursday. The cross took a dive on the back of dovish ECB’s minutes. Later on ECB’s Coeure said that "Current monetary policy stance is appropriate." and “Potential growth has not fallen by as much as we thought.” Adding: “It may imply that neutral rate of interest might be higher than is commonly estimated.”

The euro was under pressure across the board as the ECB’s minutes were leaning towards the cautious side. It read: “Broadly agree not enough evidence that inflation is sustained.” This is dovish as the ECB needs to see evidence of inflation in order to justify rate hikes. Concerning the trade war, the report said: “Widespread concerns over risk of trade conflicts.” Additionally, the ECB is concerned with euro strength and said: “Caution voiced over EUR moves.” Further justifying: “Past EUR appreciation has not had significant impact on demand”. More details here. 

Looking ahead, Mark Carney, President of the bank of England will be delivering a speech in his home country Canada. “Mark Carney is set to follow the pattern of his Deputy Governor Broadbent speaking in Australia more in general terms about the need of combining macroprudential measures with monetary policy under one roof, refraining from making direct monetary policy hints.” According to Mario Blascak, Chief Analyst at FXStreet.

Earlier in the day, the UK Brexit secretary David Davis said that nothing will really change for business during the post-Brexit transition period. 

Meanwhile, the worst-than-expected Industrial Production data in the Eurozone is not helping the euro. Industrial Production over the year to February fell to 2.9% from 3.7% the month before. The month-on-month reading in February decelerated at -0.8% from -0.6% in January. 

EUR/GBP 4-hour chart

The EUR/GBP is under pressure. Support lies at the cyclical low at 0.8668 and further down at the 0.86 figure. Resistance is priced in at 0.8740 swing high and the 0.88 figure.