FxWirePro: EUR/GBP Daily Outlook

Chart - Courtesy Trading View 

EUR/GBP was trading 0.49% lower on the day at 0.8575 at around 10:30 GMT.

Hopes for a fiscal boost from the new UK PM along with more aggressive BoE rate hike bets keep the pound buoyed.

BoE policymaker Catherine Mann said on Monday that the central bank should be prepared to raise interest rates rapidly to tame inflation. 

The markets are now pricing in an 85% chance that the BoE will hike rates by 75 bps on September 15.

On the data front, the UK Constructive PMI unexpectedly rose from 48.9 to 49.2 in August, still in the contraction territory.

On the other side, German Factory Orders contracted at a monthly 1.1% and the Construction PMI ticked lower to 41.4 in August (from 43.7).

Focus now on the ECB event on Thursday where the central bank is expected to raise policy rate by 75 bps.

Technical indicators are turning bearish. The pair has slipped below 5-DMA and is on track to test daily cloud support at 0.8533.