EUR/GBP breaks above 0.8800, fresh 3-month peaks

  • The Sterling remains on the defensive, pushes EUR/GBP higher.
  • Brexit concerns and no-confidence vote on May on the rise.
  • UK CPI rose 2.1% on a yearly basis during April.

The increasing selling pressure around the British Pound remains the name of the game so far today and is lifting EUR/GBP to fresh multi-month tops beyond 0.8800 the figure.

EUR/GBP focused on Brexit, May, data

The European cross is extending its rally for the third consecutive week on Wednesday - including the breakout of the critical 200-day SMA - always on the back of fresh Brexit jitters and rising uncertainty surrounding (still) PM May’s government.

In fact, speculations over the likeliness of a no-confidence vote on Theresa May has gathered further traction today, as MPs continue to push for her resignation, all adding to the already heightened uncertainty surrounding the government.

In the UK calendar, inflation figures tracked by the CPI showed consumer prices rose 0.6% MoM during April and 2.1% from a year earlier, both print coming in below expectations and therefore lending extra wings to the selling bias in GBP.

Further data saw Public Sector Net Borrowing at £4.97 billion, bettering consensus. Later in the week, Retail Sales for the month of April are due tomorrow.

What to look for around GBP

Uncertainty around the Brexit negotiations and May’s government has been intensifying in past hours, putting the Sterling under extra selling pressure. Investors’ focus now seems to have shifted to a no-confidence vote on the government, May’s potential resignation and the scarce chances of another vote on May’s Brexit plan at the House of Commons. On another direction and centred on the UK economy, recent publications from the industrial sector somewhat confirmed the rebound seen in the previous months, although the bounce in activity was exclusively driven by companies stockpiling in case of a ‘hard Brexit’ scenario rather than in response to a more ‘genuine’ recovery in the sector. Further out, the current steady stance from the Bank of England appears justified by below-target inflation figures, mixed results from key economic fundamentals and somewhat slowing momentum in wage inflation pressures, all adding to speculations of a ‘no-hike’ this year despite some calls signalling a potential hike in November.

EUR/GBP key levels

The cross is gaining 0.34% at 0.8813 and a break above 0.8840 (monthly high Feb.14) would expose 0.9062 (low Jan.11) and finally 0.9092 (2019 high Jan.3). On the downside, initial contention aligns at 0.8742 (high May 21) seconded by 0.8682 (100-day SMA) and then 0.8615 (55-day SMA).

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 falls below 1.1250 as US retail sales beat expectations

EUR/USD is trading below 1.1250, extending its slide. US retail sales beat expectations with the control group rising by 0.5% in May on top of upward revisions. US-Sino trade tensions are in play.


GBP/USD falls towards 1.2600 after US retail sales

GBP/USD is trading closer to 1.2600, around the weekly lows. US retail sales beat expectations and trade tensions also boost the USD. The UK is bracing for Boris Johnson to become PM. US consumer confidence is next.


USD/JPY climbs to mid-108s as 10-year US T-bond yield erases losses

Today's upbeat macroeconomic data releases from the United States provided a boost to the greenback and allowed the USD/JPY pair to advance to a session top of 108.50.


Gold surges through $1350 level, highest since April 2018

Gold caught some aggressive bids in the last hour and surged to the highest level since April 2018, around the $1358 region.

Gold News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Alone in the dark of outer space...heading to the Moon

It is almost usual practice of the Crypto market that technical extremes occur at the end of the working week – setting the stage for action over the weekend.

Read more