EUR/GBP advances to session highs around 0.8780

  • The cross is prolonging the weekly sideline theme below 0.8800.
  • UK Retail Sales next on tap on Friday.
  • MPs will discuss Brexit amendments later in the HOC.

The Sterling has reverted the initial optimism and is now helping EUR/GBP to move higher and test session tops in the 0.8780 region.

EUR/GBP looks to Brexit debate

The continuation of the rally in the greenback is weighing on any attempt of recovery in the British Pound and the rest of the risk-associated assets and is now lifting the European cross to the area of daily highs in the 0.8780/85 band.

Later in the day, MPs are set to debate and discuss further amendments in the House of Commons, while PM Theresa May is seen intensifying her efforts to get a deal through Parliament.

In the UK docket, inflation figures for the month of January disappointed expectations yesterday, as headline consumer prices rose 1.8% from a year earlier vs. 1.9% forecasted and December’s 2.1% gain. Moving forward, Retail Sales during the first month of the year are due tomorrow.

What to look for around GBP

The British Pound is expected to remain under increasing pressure as we get closer to the March 29 deadline and there is still not a hint of a solution to the EU-UK divorce, where the Irish backstop stays in centre stage and a ‘hard Brexit’ scenario is not totally ruled out. Extra weakness hitting the Sterling also comes from deteriorated fundamentals in the UK, the persistent downtrend in inflation as well as lower growth forecasts, as per the latest BoE event.

EUR/GBP key levels

The cross is now gaining 0.15% at 0.8778 facing the next hurdle at 0.8821 (high Feb.5) followed by 0.8860 (200-day SMA) and finally 0.8884 (55-day SMA). On the downside, a breakdown of 0.8752 (21-day SMA) would open the door to 0.8728 (low Feb.7) and then 0.8617 (2019 low Jan.25).

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD consolidates losses at weekly lows

Worse-than-expected German data, reviving concerns about economic growth, and upbeat US Retail Sales sent the pair lower. Yearly low at 1.1175 exposed.


GBP/USD battle around 1.3000 not looking good for bulls

An upward surprise in UK Retail Sales, fell short of boosting the Pound, hurt by Brexit uncertainty. Investors heading into a long weekend stocked in USDs.


USD/JPY: No reaction to BOJ’s decision to cut its routine buying of long-dated bonds

USD/JPY pair is currently trading at 111.93, having clocked a 112.00 earlier today. The Bank of Japan (BOJ) cut its purchases of bonds with maturities between 10 and 25 years to ¥160 billion, down ¥20 billion from the previous ¥180 billion. 


Data keeps markets moving ahead of Easter weekend

The pound dropped on Thursday despite impressive retail sales data that showed UK consumers defying Brexit uncertainties. Even as the UK was heading towards a no deal Brexit in March UK households were still spending at an impressive rate.

Read more

Gold Technical Analysis: Eyes corrective bounce on bullish 4H RSI divergence

Gold snapped its five-day winning streak with a 0.19 percent gain on Thursday, confirming a bullish divergence of the relative strength index on the 4-hour and hourly charts. 

Gold News