EUR/GBP enjoying a two-week high and magic returns to Disney

EUR/GBP surges to a two-week high as storm clouds hover over the UK economy

The EURO continues its impressive form against the gbp, currently trading at 0.8469 which is a two-week high.  Though the Eurozone has its own issues such as record inflation of 8.9% and facing a potential energy crisis, the market is more focused for now upon the gloomy prospects of the UK economy.

The Bank of England increased interest rates by 50 basis points last week, which was the largest rate hike done by the “old lady” since 1995.  However, that was followed with an honest but frightening outlook for the future of the UK economy.  The BOE has said that they expect inflation in the UK, which is currently at 41 year high of 9.4%, to rise to 13% by October. They also added that they predict the UK will slip into a recession by the fourth quarter. The Conservative leadership challenge due to be settled in September is also unnerving the sterling.

Up next, which could add to the bullish sentiment for the EUR/GBP, is the UK Preliminary Q2 GDP due for release this Friday.  The expectation is for UK Gross Domestic Product to be announced at -0.2% – considerably lower than the previous reading of 0.8%.

If indeed the GDP is announced as expected or even lower, then that would underline the scary statements about future outcomes for the UK made by the BOE. This could give the Euro bulls even more motivation to push the EUR/GBP higher.


UK GDP Q2 (Friday)                         Expectation: – 0.2%                              Previous: 0.8%


Key Areas of Interest:

On a daily chart, there is a potential resistance for the EUR/GBP at 0.84700 which is 100 sma.  

There is also evidence of a potential support on the daily chart around the 0.84244 level, which shows evidence of buying activity over the last five trading sessions.

Disney stock price surging upon a star as it reaches highest level since April

Disney has returned to the magic kingdom, with its stock price advancing to $120.13 – an increase of 6.9% in after-hours trading due to a very impressive earning report.

It was revealed that the Disney+ streamlining service has overtaken arch-rival Netflix in subscriptions to the service with 221 million subscribers, versus Netflix’s total 220 Million.

What makes this achievement even more impressive is that Disney+ was launched  in 2019, while Netflix – the first kid on the block – was born in 2007.

In fact, during the second quarter Disney+ added 14.4 million subscribers, much higher than the 10 million expected. 

It wasn’t just subscriptions that beat forecasts. Disney’s earnings for the quarter was announced at $21.5 billion against the expectation of $20.99 billion.  It didn’t stop there, as income generated by parks and consumer products generated $7.39 billion – while analysts expected a revenue figure from that sector of only $6.65 billion.

Walt Disney shares are down overall by 27% from January and 40.2% lower from the high it experienced of $187.58 per share in September 2021.

Key Areas of Interest:

Having broken through the 100 sma on the daily chart during after-hours trading, there is the potential of efforts to reach the $131.90 level which is the 200 sma on the daily chart. However, rising to that level in the immediate term is very unlikely.  

Written by James Trescothick, Global Head of Market Research

Please note that does not provide services to residents of the European Union.

If you are seeing this message in error and are not a resident of any EU country, kindly confirm below to continue.


Trade with Simply One of
the Best

Download our mobile trading app and open a world of trading at your fingertips.