EUR/GBP rises back above 0.9000 amid a stronger euro
|- Euro stronger ahead of the ECB and EU meetings.
- Pound losses strength after rising sharply last week.
The EUR/GBP is rising more than 70 pips on Monday, having the best performance in at least a month. It has climbed back above 0.9000, recovering after falling to three-week lows on Friday at 0.8937.
The move higher took place amid a stronger euro across the board. The common currency is also rising versus the US dollar, the Swiss franc, and the pound. The improvement in market sentiment appears to be helping the euro that is also receiving a boost from EUR/USD rising above 1.1350.
The pound has lost the strength it showed last week. Brexit negotiations and negative rates talks from the Bank of England limited the upside. On Monday, Ireland’s Coveney mentioned a Brexit deal is more likely but warned there is a lot of work needed first.
Regarding the euro, a key mover during the week is the European Central Bank meeting on Thursday but also the setup of the recovery fund ahead of the meeting between European leaders in Brussels on Friday. Italian PMI Conte said negotiations for the package are very difficult. Market participants appear to be discounting some kind of advance regarding the rescue fund.
Technical levels
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