- EUR/GBP regains positive traction for the fourth consecutive session on Thursday.
- Reports on ECB’s positive economic outlook extended some support to the euro.
- Brexit-related uncertainties undermined the British pound and remained supportive.
The EUR/GBP cross traded with a positive bias through the early European session, with bulls making a fresh attempt to build on the momentum beyond the 0.9100 mark.
Following the previous day's intraday pullback from six-week tops, the cross managed to regain some positive traction on Thursday and was being supported by a modest uptick in the shared currency. Bloomberg News reported on Wednesday that ECB officials are growing more confident in the region's economic outlook, which provided a goodish boost to the euro.
On the other hand, the British pound failed to capitalize on the overnight short-covering move amid worries about Brexit trade negotiations. It is worth recalling that Britain unveiled the so-called internal market bill on Wednesday, which acknowledged that some powers conferred by the legislation might be inconsistent with international law.
The legislation drew wide criticism and increased the possibility of a no-deal Brexit at the end of the transition period. This, in turn, held the GBP bulls on the defensive and remained supportive of the positive tone surrounding the EUR/GBP cross. Bullish traders, however, seemed reluctant to place aggressive bets ahead of the ECB decision on Thursday.
The European Central Bank is widely expected to leave its monetary policy settings unchanged at the end of its September policy meeting. Hence, investors will closely monitor any comments on the euro's recent appreciation and the ECB's new economic projections, which will play a key role in driving the shared currency in the near-term.
Apart from this, the incoming Brexit-related headline might continue to influence the sentiment surrounding the sterling. The combination of actors should assist investors to determine the next leg of a directional move for the EUR/GBP cross.
Technical levels to watch
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
USD/JPY holds positive ground around 151.50 following Japanese CPI data
The USD/JPY pair holds positive ground for the second consecutive day near 151.45 on Friday during the early Asian trading hours. The cautious approach from the Bank of Japan to keep monetary conditions accommodative exerts some selling pressure on the Japanese Yen.
AUD/USD depreciates on risk aversion amid a stronger US Dollar
AUD/USD extends its losses for the second successive session on Friday. However, market activity is expected to be subdued due to light trading on Good Friday. Meanwhile, the US Dollar strengthens as recent data indicates annualized economic expansion in the United States, driven by consumer spending.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Top 3 Price Prediction BTC, ETH, XRP: Retail watches from the sidelines with a bias for shorts
Bitcoin is showing strength as markets head into the Easter holidays. As it rises, altcoins are following suit, with Ethereum and Ripple posting almost similar gains. Meanwhile, there remains an unfilled CME Gap, with a lot of liquidity also resting above and below BTC price.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.