EUR/GBP challenges daily lows around 0.8670 ahead of UK PMI
|- EUR/GBP reverses Monday’s rise and retests daily lows.
- Eurozone economy's dismal performance in Q1 weighs on the cross.
- BOE consumer credit and PMI data keenly watched over.
The euro slid against its British counterpart and pushed EUR/GBP back to sub 0.8680 levels in the Asian session. The cross is struggling to move ahead of the 0.8720 level for the past few sessions, and thus, remains confined in a narrow range.
At the time of writing, EUR/GBP is trading at 0.8677, up 0.09% on the day.
EUR/GBP manages to stay afloat above the 0.8670 level, however, the euro continues to depreciate against the sterling. The UK economy consistently performs better in terms of economic development and in the management of vaccination programs way better than its counterpart. Investors keep their faith in the cable in the hope that the UK economy will race ahead in the coming quarters, which will keep a check on the pair gains.
The concerns surrounding the Brexit saga seems to be calming down except for the Northern Ireland issue, which continues to create a nuisance for the UK. Further, in a recent development, France also rejected UK’s post-Brexit provisional charges to the Fishing license. This keeps the sterling valuation overstretched helping the cross to avoid heavy selling pressure.
On the other hand, the euro is struggling with domestic chaos in relation to economic performance. On an annualized basis, the economy shrank by 1.8%, as per the Eurostat released on Friday while the delayed vaccination programmes keep the investors wary about the prospects of the economic recovery.
Investors now keenly watched over the Bank of England (BOE) Consumer Credit data along with Markit/ CIPS Manufacturing PMI in April to take some fresh trading opportunities.
EUR/GBP additional level
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.