EUR/GBP defends 0.8600 amid mixed plays of Brexit, covid


  • EUR/GBP refrains from extending recent losses, remains sluggish of late.
  • EU-UK jostle over NI, British farmers fury over Aussie trade deal.
  • UK PM Johnson, Health Minister Hancock struggled to reject covid variant fears.
  • ECB’s Lagarde favored easy money amid cautious sentiment.

EUR/GBP remains sidelined around 0.8615, inside the recent 10-pips trading range, during early Thursday morning in Asia. In doing so, the pair struggles to extend the previous day’s pullback amid mixed clues.

Among them, the market’s cautious sentiment ahead of Friday’s key US jobs report and central bankers’ rejection of the relfation fears, versus the jump in the latest inflation data, play a key role.

On Wednesday, the ECB President Christine Lagarde was the latest one to join the chorus singing “no-inflation woes”. The monetary policy decision-maker ruled out any downside implications of the latest rise in the Eurozone Consumer Price Index (CPI) while signaling the extension of easy money policies.

Elsewhere, German Retail Sales disappointed markets with a -5.5% slump versus +7.7% prior rally, weighing on the EUR/GBP prices.

In the case of the UK, Prime Minister Boris Johnson and Health Secretary Matt Hancock tried to convince markets that they’re optimistic even as the Indian covid strain raises doubts over the late June deadline to remove all virus-led lockdown measures. Further, the EU-UK tussles over the Northern Ireland (NI) protocol continue ahead of the key talks during the next week. Recently, the UK’s Brexit Minister David Frost called on, per Independent, “Brussels chiefs to show more ‘common sense’ to help find practical solutions.”

Against this backdrop, S&P 500 Futures remain sideways and the US Treasury yields stay pressured around 1.58% by the press time.

Given the mixed clues from the Brexit, covid and risk barometers, today’s second-tier from Europe and the UK may not be capable of pleasing the momentum traders.

Technical analysis

EUR/GBP funnels down inside the symmetrical triangle between 0.8640 and 0.8580, suggesting further sideways grind.

Additiojal important levels

Overview
Today last price 0.8616
Today Daily Change -15 pips
Today Daily Change % -0.17%
Today daily open 0.8631
 
Trends
Daily SMA20 0.8619
Daily SMA50 0.8626
Daily SMA100 0.8672
Daily SMA200 0.8855
 
Levels
Previous Daily High 0.8646
Previous Daily Low 0.8585
Previous Weekly High 0.8672
Previous Weekly Low 0.8575
Previous Monthly High 0.8711
Previous Monthly Low 0.8561
Daily Fibonacci 38.2% 0.8622
Daily Fibonacci 61.8% 0.8608
Daily Pivot Point S1 0.8595
Daily Pivot Point S2 0.856
Daily Pivot Point S3 0.8535
Daily Pivot Point R1 0.8656
Daily Pivot Point R2 0.8681
Daily Pivot Point R3 0.8716

 

 

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