Published date: 17 February 2025
GBPEUR
GBP/EUR continues to trade in a tight range, oscillating around the upside resistance level of 1.2032 and downside support at 1.1968. This week, inbound UK economic data and developments over Ukraine will remain front and centre of market focus, allowing some scope for price action to break recent ultra-tight ranges.
GBPUSD
GBP/USD continued to squeeze higher last week, aligning with our reversal call two weeks ago. Last week, UK GDP slightly beat expectations, and risk-sensitive sterling was buoyed by growing hope for a resolution in the Ukraine conflict. Despite knee-jerk dollar gains from a higher-than-expected US inflation print, the lack of follow-through ultimately led to further dollar length coming out of the market.
EURUSD
EUR/USD enjoyed gains throughout the week, pushing toward the recent consolidation range highs of 1.0530 as the popular EUR/USD short was partially covered. Once again, the lack of dollar follow-through from higher-than-expected inflation data pointed to somewhat stale long-term dollar positioning, further punished by weak US retail sales. Friday’s manufacturing and services PMI data will be a key release this week for both the euro and dollar.
