EURGBP

 

The euro rallied to its highest levels against the British pound since January 11th in Tuesday trading. Looking at the weekly chart above we can see that EUR/GBP has entered an 11th consecutive week of gains.

Worries over a disorderly Brexit were sparked on Monday after the second head-to-head debate between the two leadership candidates competing to replace Theresa May as prime minister.

Both the frontrunner Boris Johnson and his rival Jeremy Hunt declared that they would not be willing to accept the Northern Ireland backstop outlined in Theresa May’s Brexit deal.

In the debate hosted by the Sun and Talk Radio, Johnson was asked whether he would seek a time limit to the Irish backstop.

Johnson replied: “The answer is no. The problem is really fundamental. It needs to come out.”

Meanwhile, Brussels has repeatedly stated that the withdrawal agreement is not up for negotiation and maintain that the backstop is necessary to prevent the return of a hard border between EU-member Ireland and the British province of Northern Ireland.

On Tuesday, data from the UK Office for National Statistics showed that the labor market has continued to be resilient. The UK unemployment rate held steady at 3.8% in the three months to the end of May, a 45-year low. Average weekly earnings, including bonuses, rose by 3.4%, beating expectations of 3.1%

However, no-deal Brexit jitters eclipsed the upbeat labor market data with sterling taking a beating across the board on Tuesday. Both GBP/USD and GBP/JPY have fallen to their lowest levels since the January 3rd ‘flash crash’ and GBP/CAD has plummeted to its lowest levels since September of 2017.

Any reviews, news, research, analysis, prices or other information contained in this article is provided as general market commentary, does not constitute investment advice and may undergo changes from time to time. Trading the Financial and Currency Markets on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as to your favor. Before entering trading Financial and Currency Markets, you should carefully consider your investment objectives, level of experience and risk appetite. There is a possibility that you could sustain a loss of some or more of your initial investment and therefore you should not invest money which you cannot afford to lose. You should be aware of all the risks associated with Financial and Currency Markets trading, and in case you have any doubt, rather seek advice from an independent financial advisor. Scandinavian Capital Markets AB, its owners, employees, agents or affiliates do not give investment advice, therefore Scandinavian Capital Markets AB assumes no liability for any loss or damage, including without limitation to, any loss of profit, which may be suffered directly or indirectly from use of or reliance on such information. Scandinavian Capital Markets AB strongly encourages consultation with a licensed representative or financial advisor regarding any particular investment or use of any investment strategy.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD battling 1.1050 after the ECB, ahead of critical PMIs

EUR/USD is consolidating its losses around 1.1050 after the ECB's cautious message on Thursday. Lagarde, its president, will speak later. Coronavirus fears are somewhat receding. Forward-looking PMIs are eagerly awaited.

EUR/USD News

GBP/USD holding its ground above 1.31 ahead of critical data

GBP/USD has been holding onto 1.31 as the US dollar retreats and ahead of Markit's preliminary PMIs, key figures that may determine the Bank of England's decision next week.

GBP/USD News

Forex Today: Markets take a break from coronavirus fears, forward-looking data eyed

Here is what you need to know on Friday, January 24: Coronavirus: While the number of cases continues rising and China canceled several New Year's cel
Read more

Gold: Portrays rising trend-channel on H4, Coronavirus in focus

Gold prices lack momentum while trading around $1,561.50 during early Friday. Even so, the bullion stays inside a short-term ascending trend-channel formation that portrays the strength of the underlying momentum.

Gold News

USD/JPY stuck in range around 109.50 amid China coronavirus concerns

USD/JPY sticks to its range play around the midpoint of the 109 handle amid rising fears of the Chinese coronavirus outbreak globally, upbeat Japanese CPI data and a minor bounce seen in the US dollar across the board. Focus shifts to US PMIs. 

USD/JPY News

Forex Majors

Cryptocurrencies

Signatures