EUR/GBP challenges 4-week lows near 0.8930
|- EUR/GBP recedes to 0.8930 on strong GBP-buying.
- Boris Johnson will speak later in the day.
- UK Mortgage Approvals came in at 42.7K in June.
The now firmer tone around the Sterling is forcing EUR/GBP to recede further ground and test multi-week lows in the 0.8930 region.
EUR/GBP looks to BoJo, Brexit
The European cross is adding to Tuesday’s losses in the 0.8930 region, area last traded in early July on the back of a significant pick up in the demand for the British Pound and considerable selling pressure hitting the shared currency.
In the meantime, GBP remains bid ahead of Boris Johnson’s first speech later in the day from Number 10.
There is no news from the Brexit front so far and this scenario is unlikely to change as the Parliament will go into recess tomorrow until early September.
On this side of the Channel, things are getting worse for EUR after advanced PMIs showed further deterioration in the manufacturing sector is expected in core Euroland this month.
Moving forward, all the attention will be on the ECB event due tomorrow as well as prospects of extra monetary easing.
EUR/GBP key levels
The cross is retreating 0.39% at 0.8927 and a breach of 0.8919 (monthly low Jul.2) would open the door to 0.8885 (55-day SMA) and then 0.8872 (low Jun.20). On the upside, the next barrier aligns at 0.9005 (high Jul.23) seconded by 0.9051 (monthly high Jul.17) and finally 0.9092 (2019 high Jan.3).
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