EUR/GBP loses the grip, now targets 0.8800
|- EUR/GBP extends the correction lower and looks to 0.8800.
- UK 10-year yields dropped to levels last seen in October 2016.
- Brexit uncertainty keeps dominating the UK landscape.
Alternating trends in the single currency and the British Pound are prompting EUR/GBP to recede a tad from recent tops in levels just shy of 0.8850.
EUR/GBP looks to yields, risk trends, Brexit
The European cross is now extending the weekly sideline theme below the 0.8850 mark, always looking to the US-China trade dispute as the exclusive driver behind the price action in the global markets.
The UK money markets are following the broader downbeat sentiment, where yields of the 10-year Gilt have dropped and are now seeing a mild rebound from sub-0.89% levels, area last seen in October 2016.
Still in the UK, former London mayor and a firm candidate to succeed Theresa May in Number 10 Boris Jonhson was ordered to appear in court after being accused of misconduct in the run-up for the 2016 referendum.
EUR/GBP key levels
The cross is gaining 0.01% at 0.8815 and a break above 0.8850 (monthly high May 24) would expose 0.9062 (low Jan.11) and finally 0.9092 (2019 high Jan.3). On the flip side, the next down barrier aligns at 0.8785 (200-day SMA) seconded by 0.8724 (low May 21) and then 0.8643 (55-day SMA).
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.