EUR/GBP may move below 200-dma on nascent signs of UK wage growth - ING

EZ industrial production and 3Q employment data will likely play second fiddle today amid a busy US calendar, suggests Viraj Patel, Research Analyst at ING.

Key Quotes

“EUR/USD slid to 1.1720 yesterday after US PPI data positively surprised, though has partly recovered to 1.1750 on US politics; we expect the retrace to continue under broad USD weakness post-FOMC – and eye a move back towards the 1.1800 level (100-dma).”

“In the UK, the focus will be on the Oct jobs report – signs of wage inflation moving in the right direction would be positive for GBP, not least as it confirms a tight UK labour market and validates the BoE’s tightening bias. We would look for EUR/GBP to move back below the 200-dma level (0.8805) on any positive wage growth surprise.”