- 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.
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
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales
Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.