EUR/GBP prints four-day downtrend below 0.8600 amid risk-off mood
|- EUR/GBP remains pressured amid a quiet Asian session.
- US Treasury Secretary Yellen’s comments, Brexit headlines weigh on the market sentiment.
- German Factory Orders awaited, risk catalysts keep the driver’s seat.
EUR/GBP stays depressed, down 0.05% around 0.8585, amid Monday’s Asian session trading. Europe’s hopes from US President Joe Biden to break the Brexit deadlock joins comments from US Treasury Secretary Janet Yellen to recently exert downside pressure on the risk appetite, as well as on the pair prices.
Uncertainty over the UK’s total unlock on June 21, due to the Indian covid variant, joined the European currency’s (Euro) gains on the downbeat US dollar, mainly led by the negative surprise of the US jobs report, to confuse EUR/GBP traders on Friday. Also challenging the pair traders could be the chatters surrounding ECB’s rejection of easy money policy versus the BOE’s favor for tapering.
The Times recently came out with the news suggesting US President Joe Biden’s meddling into the Brexit impasse. The news said, “President Biden will warn Boris Johnson not to renege on the Northern Ireland Brexit deal when they meet for the first time at the G7 summit this week.”
On the other hand, US Treasury Secretary Yellen spoke at the end of the G7 and mentioned higher rates as good for the Fed, fueling the rate hike concerns and risk-off mood.
Elsewhere, chatters over the UK’s Treasury Secretary Lizz Truss’ comments on China’s pernicious trade misbehavior, as well as US Secretary of State’s vow to hold China accountable on covid origin, also weigh on the market sentiment.
Amid these plays, S&P 500 Futures drop 0.10% intraday whereas the US 10-year Treasury yields gain one basis point to 1.57% by the press time.
Moving on, German Factory Orders for April, expected 1.0% versus 3.0% prior, will decorate the calendar but sentiment-related headlines become the key to watch for fresh impulse.
Technical analysis
A descending triangle between 0.8565 and 0.8630 restricts short-term EUR/GBP moves.
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