EUR/GBP climbs to 5-month highs above 0.89, attention turns to Draghi
|- UK PM candidate Hunt says it's possible to renegotiate Brexit deal.
- Coming up: ECB President Draghi's speech at 17 GMT.
After closing the previous week with small gains above the 0.89 mark, the EUR/GBP pair pushed higher on Monday and touched its highest level since January at 0.8945. As of writing, the pair was up 0.42% on the day at 0.8941.
Despite the lack of significant fundamental drivers today, the uncertainty surrounding the UK politics seems to be weighing on the cable ahead of the second round of voting for the Conservative Party leadership tomorrow. Earlier today, Jeremy Hunt, one of the candidates to succeed British Prime Minister Theresa May, claimed that it was possible to renegotiate the Brexit deal, dismissing European officials, who made it very clear that the EU wouldn't reopen the Withdrawal Agreement but failed to help the pound sterling find demand.
Later in the session, European Central Bank President Mario Draghi will be delivering a speech. On Tuesday, investors will be paying close attention to the trade balance and inflation data for the eurozone released by the Eurostat. Markets expect the core Consumer Price Index (CPI) to stay unchanged at 0.8% on a yearly basis in May. A deviation from the market consensus could trigger a market reaction.
Technical levels to watch for
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