- 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.
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. 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.