EUR/GBP jumps to daily tops, back above mid-0.8900s post-ECB
|- The shared currency caught some fresh bids after the ECB increased PEPP by €600 billion.
- The British pound remained depressed amid fresh Brexit jitters.
The EUR/GBP cross reversed a mid-European session dip to the 0.8930 region and moved back closer to the top end of its daily trading range post-ECB announcement.
The shared currency caught some fresh bids after the European Central Bank (ECB) decided to expand the size of its Pandemic Emergency Purchase Programme (PEPP) by €600 billion. The increase in the size of the PEPP was higher than market expectations and the positive surprise prompted some fresh buying around the euro pairs.
On the other hand, the British pound was pressured by the rising odds of hard Brexit. The market concerns resurfaced after the BoE Governor Andrew Bailey reportedly told banks to step up plans for the UK to leave the European Union without a trade deal. This comes on the back of the lack of progress in the ongoing Brexit talks, which might undermine the sterling and provide an additional boost to the EUR/GBP cross.
Moving ahead, market participants now look forward to the ECB President Christine Lagarde's comments at the post-meeting press conference, which will now play a key role in influencing the near-term sentiment surrounding the common currency.
Technical levels to watch
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.