- EUR/GBP witnessed some selling after the BoE Haldane's hawkish comments.
- COVID-19 jitters, Brexit woes capped gains for the GBP and helped limit losses.
- Investors also seemed reluctant ahead of the ECB policy meeting on Thursday.
The EUR/GBP cross lacked any firm directional bias and seesawed between tepid gains/minor losses, around the 0.8600 mark through the first half of the European session.
A combination of diverging forces failed to provide any meaningful impetus to the EUR/GBP cross and led to a subdued/range-bound price action on Wednesday. The EUR/GBP cross witness some selling and moved further away from four-day tops touched in the previous session in reaction to the Bank of England Chief Economist Andy Haldane's hawkish comments.
Haldane noted that the UK economy is going gang-busters and there may be the need to start turning off the stimulus tap. He said that the UK needs not to become too dependent on monetary medicine and is already seeing some pretty punchy pressures on prices. If pay and costs are picking up, inflation on the high street isn't very far behind, Haldane added further.
That said, the EU-UK collision over Norther Ireland protocol and talks that further easing of lockdown measures in the UK may be postponed continued acting as a headwind for the British pound. Apart from this, a modest uptick in the shared currency – amid a subdued US dollar price action – helped limit the downside for the EUR/GBP cross, at least for now.
Investors also refrained from placing any aggressive bets, rather preferred to wait on the sidelines ahead of the upcoming European Central Bank meeting on Thursday. This makes it prudent to wait for some strong follow-through selling before traders start positioning for any further decline amid absent relevant market moving economic releases.
Technical levels to watch
|Today last price||0.8597|
|Today Daily Change||-0.0003|
|Today Daily Change %||-0.03|
|Today daily open||0.86|
|Previous Daily High||0.8627|
|Previous Daily Low||0.8594|
|Previous Weekly High||0.8646|
|Previous Weekly Low||0.8566|
|Previous Monthly High||0.8711|
|Previous Monthly Low||0.8561|
|Daily Fibonacci 38.2%||0.8615|
|Daily Fibonacci 61.8%||0.8607|
|Daily Pivot Point S1||0.8587|
|Daily Pivot Point S2||0.8574|
|Daily Pivot Point S3||0.8554|
|Daily Pivot Point R1||0.862|
|Daily Pivot Point R2||0.864|
|Daily Pivot Point R3||0.8653|
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.