EUR/GBP bounces off 2020 lows, around 0.8320

  • EUR/GBP rebounds from YTD lows in sub-0.8300 area.
  • The sterling gives away some gains following Johnson’s reshuffle.
  • German, EMU flash GDP came in below expectations in Q4.

The sterling is correcting lower following the moderate pick-up on Thursday and is helping EUR/GBP to bounce off recent yearly lows in the sub0.8300 region.

EUR/GBP tested fresh 2-month lows

The 4-session negative streak in the European cross appears to have met strong contention in Thursday’s low just below the key support at 0.8300 the figure, area las visited in December 2019.

The upbeat momentum in the quid accelerated on Thursday after UK PM Boris Johnson reshuffled his cabinet and Sajid Javid quit as Chancellor amidst rising rumours pointing to some effervescence between Javid and Johnson’s adviser Dominic Cummings.

In the docket, preliminary GDP figures in Germany and the broader Euroland showed both economies are seen expanding 0.0% QoQ and 0.1% QoQ, respectively, during the October-December 2019 period, both prints coming in below initial estimates.

Later in the session, key US Retail Sales and the flash U-Mich index are expected to add some volatility to the price action in the global assets.

EUR/GBP key levels

The cross is up 0.13% at 0.8318 and faces the next hurdle at 0.8443 (21-day SMA) seconded by 0.8475 (55-day SMA) and then 0.8537 (weekly/monthly high Feb.4). On the flip side, a breach of 0.8295 (2020 low Feb.13) would expose 0.8275 (2019 low Dec.13) and then 0.8248 (monthly low July 2016).

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

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: Growth concerns to keep weighing on the sentiment

The EUR/USD pair closed a second consecutive week unchanged around 1.1840, as the dollar got to appreciate ahead of the close on upbeat US data combined with risk-off. Sluggish global economic growth to keep weighing on the market’s sentiment.


GBP/USD: Brexit deal and coronavirus second wave leading the way

The GBP/USD pair stalled its weekly recovery on Friday, ending the day in the red at around 1.2915. Mild hopes related to a post-Brexit trade deal with the EU provided modest support to Sterling earlier in the week.


Gold: Next week's key macroeconomic events to keep an eye on

The troy ounce of the precious metal closed the week modestly higher at $1,950 but struggled to make a decisive move in either direction. Following its September policy meeting, the Federal Reserve kept its policy rate unchanged as ...

Gold News

It was the best of times, It was the worst of times

Economic reports from most of the major economies show the pace of the recovery has slowed.  In the same way, the recovery began before the end of the  Q2, the loss of economic momentum was seen as early as July in some series and August in others.

Read more

After yesterday's JMMC meeting WTI settles near $40 per barrel

WTI has been through a rollercoaster this week. The liquid gold has been in a downtrend leading into the OPEC+ JMMC meeting and then reversed the whole move. At the meeting the group agreed to extend the compensation period for overproduction till the end of December. 

Oil News