EUR/GBP advances to 3-week highs beyond 0.8500

EUR/GBP trades on a firmer footing above 0.8500 on Thursday.
The sterling extends the drop on EU-UK downbeat headlines.
EMU Consumer Confidence improved to -6.6 in February.

Pablo Piovano FXStreet

The renewed selling bias hitting the quid is helping EUR/GBP to regain the 0.8500 mark and above, clinching at the same time fresh multi-week highs.

EUR/GBP boosted by Brexit news

The British pound exacerbated the daily downside on Thursday (despite the persistent weakness in the greenback) after the UK shifted to a harder position ahead of the trade talks due to start on Monday.

Indeed, UK officials stressed that the country would abandon the negotiating table in June if there is no prospects of a ‘broad outline’ trade agreement and reiterated once again that the UK would not accept any alignment with EU rules.

Data wise, the Consumer Confidence in the euro area came in at -6.6 in February, a tad above January’s reading. Further releases saw the ECB’s Private Sector Loans expanding at an annualized 3.7% and the M3 Money Supply expanding 5.2% from a year earlier.

In the UK, BoE’s J.Cunliffe said that monetary policy can do little if anything at all regarding the supply shock provoked by the Chinese coronavirus.

EUR/GBP key levels

The cross is up 0.79% at 0.8499 and faces the next hurdle at 0.8537 (weekly/monthly high Feb.4) seconded by 0.8595 (2020 high Jan.14) and then 0.8746 (200-day SMA). On the downside, a drop below 0.8338 (weekly low Feb.25) would expose 0.8295 (2020 low Feb.13) and finally 0.8281 (2020 low Feb.18).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Bitcoin has found or is near a bottom, extended consolidation to follow: K33

Bitcoin (BTC) is nearing or has already established a bottom, which could be followed by a sustained period of slow price movement, according to K33.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.