EUR/GBP rises to mid-0.8500s ahead of UK data and BoE's Carney
|The EUR/GBP cross gained some fresh traction and traded with mild positive bias on Friday, albeit has struggled to build on early gains further beyond mid-0.8500s.
Thursday's dovish remarks by the ECB President Mario Draghi failed to assist the cross to extend its sharp recovery move from the vicinity of 0.85 handle. The cross subsequently reversed all of its daily gains and finally settled in negative territory for the second consecutive session.
Also on Friday, subdued price action around both the majors (EUR/USD and GBP/USD) did little to provide any fresh impetus. However, a cautious mood, ahead of today's UK economic docket, has led to a relative underperformance of the British Pound against its European counterpart and has helped the cross to hold with minor gains.
Today's UK macro releases includes Halifax HPI, manufacturing and industrial production along side goods trade balance and construction output data. Apart from the economic releases, GBP trader will closely scrutinize comments from BOE Governor Mark Carney, where hints over monetary policy outlook might trigger a fresh bout of volatility around GBP crosses.
UK: Downside risks to manufacturing output – TDS
Technical levels to watch
Bulls would be eyeing for a sustained momentum beyond 0.8570 immediate resistance, above which the cross is likely to extend the up-move towards 0.8595-0.8600 region (200-day SMA) before darting back towards mid-0.8600s horizontal hurdle. Meanwhile, weakness back below 0.8530 level is likely to accelerate the slide back towards the 0.85 handle, en-route 0.8480-75 support area.
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.