- EUR/GBP 0.88 to break?
- Key UK data coming up this week.
EUR/GBP is heading back south towards the recent lows within a move that commenced from a cluster of hourly MAs at 0.8860. Currently, EUR/GBP is trading at 0.8823, down -0.44% on the day, having posted a daily high at 0.8872 and low at 0.8808.
From data for the euro, there was a positive tone in Germany's business sector. We had Germany’s ZEW survey that showed investor sentiment was falling in February in the wake of the recent market volatility. The data gives the impressions that the economy retains solidly positive momentum.
All eyes look ahead to this week's UK jobs data
UK: Wage growth data eyed for BoE’s May rate hike prospects - ING
For the UK, however, the manufacturing orders data from the CBI were weaker than the consensus, but it this week’s jobs and wage numbers that will likely determine the pounds near-term trajectory given that the data will be keenly eyed by the BoE. Of course, we are keeping a close ear to the ground for Brexit developments as well.
EUR/GBP levels
Analysts at Commerzbank explained how EUR/GBP continues to slowly ease back and noted how the market last week reversed just ahead of the 0.8926 mid-January high and the top of the channel at 0.8957:
"Initial support lies circa 0.8800. Key nearby support is offered by the December and January lows at 0..8689/87. While these hold we remain unable to rule out recovery to the 0.9034 October 2017 high. This remains the barrier to the 0.9071/0.9175 61.8% and 78.6% Fibonacci retracements."
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.