EUR/GBP drops sharply to 0.9025, 3-week low as Pound jumps on Merkel’s comments.
- Pound jumps across the board following comments from German Chancellor.
- EUR/GBP breaks range and tumbles toward 0.9000.
The Pound rose sharply and pushed EUR/GBP sharply to the downside. The pair is having the worst performance in months, extending the correction from August highs.
Brexit deal hopes boost GBP
Angela Merkel said that a solution to the Irish border could be found before the October 31 deadline. Her comments triggered some optimism to avoid a hard Brexit. UK Prime Minister Boris Johnson also meet French President Emmanuel Macron. According to Macron, Johnson must present concrete proposals for Brexit.
Today’s meetings and comments triggered a rally in the Pound that is the best performer in the market. EUR/GBP was hovering around 0.9120 and tumbled to 0.9027 in a few minutes, reaching the lowest since July 29.
As of writing trades at 0.9045, down 90 pips for the day. It is consolidating the breakout of a trading range between 0.9095 and 0.9170 that had been in place since last Friday.
The Euro continues with the correction that started two weeks ago from the multi-year high it reached at 0.9323. Since then it had fallen almost 300 pips, posting losses in six out of the last eight trading days.
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
