EUR/GBP clinches 0.8800 and beyond on steady BoE
|- The cross moves higher and tests 2-day peaks above 0.8800.
- The BoE left its monetary policy unchanged today.
- PM Theresa May will meet with EU officials with focus on backstop.
The negative mood around the British Pound is now lifting EUR/GBP to fresh 2-day highs in levels beyond 0.8800 the figure.
EUR/GBP up move bolstered by GBP-selling
A wave of extra selling orders pushed the Sterling lower vs. its rival currencies in the wake of the BoE meeting, motivating the European cross to reclaim the 0.8800 milestone and above.
In line with market expectations, the Bank of England left the refi rate and the Asset Purchase Facility intact at 0.75% and £435 billion, respectively, with the MPC voting unanimously to maintain the monetary status quo.
GBP is also deriving downside pressure after the central bank revised lower its forecasts for GDP growth this year (1.2% from 1.7%) and 2020 (1.5% from 1.7%) backed on the impact on the domestic economy of increased Brexit uncertainty and the global slowdown.
The BoE also sees the tightening cycle running at a gradual and limited pace as long as economy matches expectations.
EUR/GBP key levels
The cross is now up 0.14% at 0.8795 and a surpass of 0.8821 (high Feb.7) would aim for 0.8861 (200-day SMA) and finally 0.8893 (55-day SMA). On the flip side, immediate contention emerges at 0.8746 (10-day SMA) seconded by 0.8655 (monthly low Nov.13 2018) and then 0.8617 (2019 low Jan.25).
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.