EUR/GBP clings to gains near 0.8540, focus on Brexit, ECB
- The cross is looking to add to yesterday’s gains above 0.8500.
- Support has so far emerged around the 0.8500 neighbourhood.
- ECB minutes, Brexit talks to keep investors entertained today.
The now softer tone around the British Pound is helping EUR/GBP to keep daily gains and business above the critical 0.8500 mark.
EUR/GBP looks to Brexit and ECB
The European cross is advancing for the second straight session on Thursday after meeting strong support in the 0.8500 neighbourhood on Wednesday.
The cross trimmed part of its initial gains after German Factory Orders contracted more than expected during February, adding to the persistent concerns over the health of the euro area and Germany’s in particular.
Back to Brexit, the Sterling remained apathetic on ‘constructive’ talks between PM Theresa May and Labour leader Jeremy Corbyn. Talks are expected to resume in the next hours with the main focus on the customs union, all amidst rising anger among Brexiteers. On the latter, it is worth mentioning that ministers Chris Heaton-Harris and Nigel Adams resigned yesterday.
On the today's calendar, the ECB is expected to publish its minutes from the latest meeting, where details on the TLTRO-III and the revised projections for economoic growth and inflation in Euroland will be in the limelight.
EUR/GBP key levels
The cross is advancing 0.07% at 0.8537 and faces the next hurdle at 0.8564 (21-day SMA) followed by 0.8648 (high Mar.29) and finally 0.8652 (55-day SMA). On the downside, a break below 0.8502 (low Apr.3) would aim for 0.8483 (low Mar.27) and then 0.8471 (2019 low Mar.13).
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
