EUR/GBP consolidates below 0.8640 ahead of ECB meet

EUR/GBP remains muted in the Asian trading session.
EUR is under pressure ahead of the ECB meeting
Brexit woes, Delays in economic reopening weigh on sterling.

Rekha Chauhan Independent Analyst

The EUR/GBP pair remains muted on Thursday in the Asian trading hours. The cross-currency pair squeezes in a very close trading band.

At the time of writing, EUR/USD trades at 0.8624, up 0.02% for the day.

The ECB in its Thursday meeting will announce its quarterly projections for inflation and growth, with the rate decision and a press conference to follow. The recent economic data suggest that with the ease of lockdown and the faster rollout of vaccination, the Eurozone economy would rebound strongly in the second half of the year.

The Eurozone inflation in May accelerated to 2%, up from 1.6% in April. However, the rising pricing pressure is being downplayed by the central bank. Market participants expect the ECB to maintain its status-quo on the interest rate decision. The shared currency remained sidelined ahead of the decision.

On the other hand, the sterling is facing the challenge of the probable delay in the UK government plan of complete re-opening of the economy on June 21, due to the “Delta” covid-19 stain. If the lockdown is extended for another 15 days or a month then it could negatively impact the British pound.

In addition to that, the increasing discord between UK-EU over the Northern Ireland protocol could instigate a trade war. This could impact GBP valuations against the US dollar and euro.

As for now, traders are eagerly waiting for the ECB Interest Rate and Deposit rate decision as well as the ECB Press Conference to gauge the market sentiment.

EUR/GBP additional levels

EUR/GBP

Overview
Today last price	0.8627
Today Daily Change	0.0000
Today Daily Change %	-0.00
Today daily open	0.8627

Trends
Daily SMA20	0.8611
Daily SMA50	0.8632
Daily SMA100	0.8655
Daily SMA200	0.8845

Levels
Previous Daily High	0.8638
Previous Daily Low	0.8589
Previous Weekly High	0.8646
Previous Weekly Low	0.8566
Previous Monthly High	0.8711
Previous Monthly Low	0.8561
Daily Fibonacci 38.2%	0.862
Daily Fibonacci 61.8%	0.8608
Daily Pivot Point S1	0.8598
Daily Pivot Point S2	0.8569
Daily Pivot Point S3	0.8549
Daily Pivot Point R1	0.8647
Daily Pivot Point R2	0.8667
Daily Pivot Point R3	0.8696

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.