EUR/GBP climbs to fresh 3-month highs around 0.9160

  • EUR/GBP pushes higher beyond 0.9160 on Monday.
  • The sell-off in the sterling is sustaining the move in the cross.
  • German flash June CPI next of relevance in the docket.

The selling pressure continues to pick up pace around the British pound and is now lifting EUR/GBP to the 0.9160 region, levels last traded in late March.

EUR/GBP up on GBP-selling, Brexit woes

EUR/GBP climbed to fresh multi-month tops following an exacerbated sell-off in the sterling and a firmer note surrounding its ex-European peer.

In fact, the quid is adding to Friday’s losses following unabated concerns around the impact of the coronavirus pandemic on the UK economy as well as uncertainty surrounding the Brexit talks.

On the latter, negotiators D.Frost (UK) and M.Barnier (EU) will meet today in Brussels in what will be the start of a crucial week in the EU-UK trade negotiations, with the deadline to extend the post-Brexit transition period (that ends on December 31) finishing on June 30.

On the data front, all the attention will be on the publication of the flash June CPI in Germany. Earlier in the session, the BoE’s Consumer Credit contracted by nearly £5 billion in May while Mortgage Approvals dropped to 9.27K during the same period. Closer to home, EMU’s Consumer Confidence matched the preliminary reading at -14.7 for the current month.

What to look for around GBP

The pound is expected to remain under the microscope this week, as the EU and the UK will try to clinch a trade deal always with an extension of the transition period in the centre of the debate. Further drivers weighing on the quid come in the form of probable extra stimulus by the BoE (negative rates?) in the near-term and further deterioration of UK fundamentals amidst the coronavirus pandemic.

EUR/GBP key levels

The cross is gaining 0.80% at 0.9161 and faces the next hurdle at 0.9324 (2019 high Aug.12) followed by 0.9499 (2020 high Mar.19) and finally 0.9649 (monthly high January 2009). On the downside, a breach of 0.8864 (monthly low Jun.9) would expose 0.8818 (100-day SMA) and then 0.8701 (200-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. 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

AUD/USD consolidates, bulls eye push towards 0.7400

AUD/USD is currently trading just below Tuesday highs at 0.7369, as bulls eye a push towards the 0.7400 level. A significant improvement in global risk appetite gave AUD a boost on Tuesday and sets the currency up well for the coming Wednesday Asia session.


Gold survives test of $1800 for now, eyes test of 200DMA at $1796

Spot gold (XAU/USD) seems to have survived a test of the psychological $1800 level for now, with buyers coming in ahead of the November 2011 and October 2012 highs (at $1803 and $1796 levels respectively).

Gold news

NZD/USD wavers around 2.5-year high below 0.7000 even as RBNZ’s Orr backs low interest rates

NZD/USD keeps the choppy trading above 0.6965, easing five pips off-late. RBNZ Governor Adrian Orr says low interest rates ensure NZD’s competitiveness. A light calendar in Asia highlights risk news for fresh impulse.


On-chain metrics spell trouble for Bitcoin, Ethereum, and XRP despite on-going bull rally

The top three cryptocurrencies are seeing massive gains over the past few days. BTC price is close to its all-time high, currently trading at $19,300. XRP had a massive 242% colossal rally in the past week. ETH also closely following BTC's step.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info