EUR/GBP aims for 1-week high amid renewed GBP weakness


  • Fears of no-deal Brexit, absence of major catalysts weaken the British Pound (GBP) ahead of the key UK event.
  • Fewer data/events from Eurozone highlight the Fed speeches, global political plays as directives.

Although latest rhetoric from the Fed has mostly triggered the Euro’s (EUR) profit-booking, the regional currency manages to benefit from the GBP weakness as the EUR/GBP pair takes the rounds to 0.8960 heading into Europe open on Wednesday.

With the US Federal Reserve policymakers scaling back their previous bearish threats, the EUR repeated its tendency to lose while the US Dollar (USD) rises. Though, threats of hard Brexit from the frontrunner of the UK Prime Minister’s post Boris Johnson and disappointing British CBI Retail Sales survey results continue making the region currency a gainer versus its UK counterpart.

Moving on, except Germany’s GfK Consumer Climate Index, there aren’t any major data/events scheduled for publishing from the Eurozone while quarterly testimony on the inflation report by the Bank of England (BOE) officials will be the crucial event from the UK.

German consumer sentiment gauge is expected to remain modestly flat with 10.1 mark versus 10.0 prior. On the contrary, BOE officials might emphasize more on the recent bearish rhetoric from major central banks and challenges to the Brexit in spite of focusing more on the 2-month old inflation report.

Technical Analysis

June 18 high around 0.8976 holds the door for the pair’s run-up to 0.9000 round-figure whereas 0.9065, 0.9100 and the year to date top surrounding 0.9120 can please buyers afterward.

During the pullback, 0.8930 and 21-day simple moving average (21-day SMA) around 0.8885 will entertain the counter-trend traders ahead of challenging them by 0.8840 and 200-day SMA level of 0.8783

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 hovers around 1.1130 in dull session, ECB eyed

The EUR/USD pair has recovered from a fresh weekly low of 1.1105 but remains depressed. Market players now waiting for ECB’s monetary policy, the last one presided by Mario Draghi.

EUR/USD News

GBP/USD attempting to recover after parliament slowed down the Brexit process

GBP/USD is moving up toward 1.29, trying to recover after parliament rejected the fast-track process that PM Johnson wanted for approving his Brexit deal. An extension to Article 50 and elections are on the cards.

GBP/USD News

USD/JPY struggles below mid-108.00s, over one-week lows

The Greenback held weaker against its Japanese counterpart, with the USD/JPY pair struggling below mid-108.00s, or over one-week lows set earlier this Wednesday.

USD/JPY News

Gold climbs higher toward $1,500 on risk-aversion

The XAU/USD pair gained traction on Wednesday and rose toward the upper-limit of its two-week-old range near the critical $1,500 handle supported by risk-off flows.

Gold News

If you are a "Hodler" here is where you could find support in Bitcoin

Today the price of Bitcoin fell and the price is now headed toward the 7,310.00 support used as a resistance zone on the week of the 3rd September 2018.

Read more

Forex MAJORS

Cryptocurrencies

Signatures