- Political drama continues to weigh on the GBP.
- Uninspiring PMI data from Europe doesn't allow euro to gather strength.
- Coming up on Friday: Retail sales data from the UK.
The EUR/GBP pair dropped below the 0.88 handle today but didn't have a difficult time reversing its direction and moving into the positive territory. At the moment, the pair is trading at 0.8820, adding 0.16% on a daily basis. In case the pair finishes the day higher, its winning streak will increase to 17 days.
Earlier today, the shared currency came under pressure after the Markit Manufacturing PMI and Services PMI's preliminary readings for May came in below market expectations. Meanwhile, in its April 10 meeting minutes, the European Central Bank noted that recent data were even weaker than expected and that the inflation was "uncomfortably below" the bank's aim.
On the other hand, Sir Geoffrey Clifton-Brown, treasurer of the 1922 Committee, today claimed that British Prime Minister Theresa May would face a no-confidence vote if she does not announce her resignation date by this Friday. Although the PM's spokesman said that he was not aware of an announcement on Friday, markets are not expecting to PM May to remain in her position. Additionally, government whip Mark Spencer today said the vote on the Withdrawal Agreement Bill won't be taking place in the week starting June 3, confirming the lack of support for the deal. The latest chatter suggests that the PM is planning to rewrite the WAB.
On Friday, the UK's Office for National Statistics will publish the retail sales data and there won't be any macroeconomic data releases from the euro area.
Technical levels to consider
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
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.