EUR/GBP advances above 0.9000 after ECB expands PEPP by €600 billion


  • EUR/GBP rises sharply following ECB's policy announcements on Thursday.
  • ECB keeps policy rates unchanged, expands PEPP by €600 billion.

The EUR/GBP pair rose sharply during the American trading hours as the shared currency gathered strength on the European Central Bank's (ECB) policy announcements. After advancing to a fresh daily high of 0.9007, the pair retreated slightly and was last seen up 0.75% on the day at 0.8995.

EUR capitalizes on ECB's decisive policy action

The ECB on Thursday announced that it kept its key interest rates unchanged as expected. More importantly, the bank said it expanded its Pandemic Emergency Purchase Programme (PEPP) by €600 billion to further support the economic recovery.

Assessing the details of the policy statement, "the bank extended the length of the PEPP to June 2021 – a year from now. The initial funds were projected to run out by the autumn," noted FXStreet analyst Yohay Elam. "And while the bank promised flexibility – potentially purchasing more bonds of hard-hit countries such as Spain and Italy – it refrained from junk bonds." 

Additionally, Christine Lagarde, President of the ECB, said that they were confident about finding a solution with regards to German constitutional courts ruling on the ECB's asset purchase programme. 

Reflecting the broad-based EUR strength, the EUR/USD pair rose above 1.1300 for the first time since mid-March. On Friday, Factory Orders data from Germany will be looked upon for fresh impetus.

Technical levels to watch for

EUR/GBP

Overview
Today last price 0.8993
Today Daily Change 0.0059
Today Daily Change % 0.66
Today daily open 0.8934
 
Trends
Daily SMA20 0.8902
Daily SMA50 0.8828
Daily SMA100 0.8727
Daily SMA200 0.8697
 
Levels
Previous Daily High 0.8939
Previous Daily Low 0.8879
Previous Weekly High 0.9054
Previous Weekly Low 0.8881
Previous Monthly High 0.9054
Previous Monthly Low 0.8691
Daily Fibonacci 38.2% 0.8916
Daily Fibonacci 61.8% 0.8902
Daily Pivot Point S1 0.8896
Daily Pivot Point S2 0.8857
Daily Pivot Point S3 0.8836
Daily Pivot Point R1 0.8956
Daily Pivot Point R2 0.8977
Daily Pivot Point R3 0.9016

 

 

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