EUR/GBP’s upside attempts remain capped below 0.9100
|- EUR/GBP steady above 0.9040 and capped below 0.9100.
- The pound remains on the defensive despite upbeat Brexit news.
- Downbeat German Busines Climate Index adds pressure on the EUR.
The euro has been moving back and forth against the pound, trading without a clear bias on Monday. The pair remains steady on the upper range of 0.9000, with upside attempts limited below 0.9100 and risk aversion pushing both currencies down against the USD.
Hopes of a Brexit deal ease GBP’s weakness
News reports about the extension of the Brexit negotiations has boosted hopes of a trade deal between the UK and the EU and offered support to the sterling earlier today. The pair lost ground during the London trading session to hit session lows at 0.9040.
According to newspaper headlines, EU representative Michael Barnier will stay in London until Wednesday in an attempt to seal a trade agreement with the UK to avoid an unfriendly exit from the Union.
On the macroeconomic front, the sharper than expected deterioration of the German Business Climate, with the IFO Index retreating in October for the first time since the start of the pandemic, has increased concerns about the economic impact of the coronavirus, adding negative pressure on the euro.
The common currency, however, has found support at 0.9040 and pared daily losses to return to 0.9080 area and remain practically unchanged on the day. From a wider point of view, the pair is consolidating gains after having appreciated nearly 1% late last week although it seems unable to breach the 0.9100 level.
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.