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.

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).

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD pressured around 1.13 after jump in US jobs

EUR/USD is trading around 1.13, down after US Non-Farm Payrolls shocked with a leap of 2.5 million jobs in May, contrary to all projections. The greenback is gaining while stocks are falling, a correlation breakdown. ECB stimulus previously supported the euro.

EUR/USD News

GBP/USD retreats from highs

GBP/USD is trading below 1.27, off the highs. The pound is struggling after Chief EU Negotiator Barnier reported little progress in Brexit talks. Robust US jobs support the dollar.

GBP/USD News

Gold risks further falls amid a potential bear pennant

The massive $45 slump Gold prices (XAU/USD) on Friday created a bearish pennant formation on the hourly chart, indicating that the spot remains exposed to further downside risks in the near-term.

Gold News

Institutional demand exceeds Bitcoins supply

Greyscale floods the market with fresh money to satisfy the demand of its clients. Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences. Market remains at risk on the verge of new bullish territory.

Read more

WTI rallies above $39 as focus shifts to OPEC+ meeting

Crude oil prices built on Thursday's modest gains and rose sharply on Friday boosted by the upbeat market mood optimism surrounding Saturday's OPEC+ meeting. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures