EUR/GBP drops to fresh weekly lows as Euro tumbles
- Euro weakens across the board following comments from ECB official.
- Pound among top performers of the day, UK data surpass expectations.
The EUR/GBP pair continued to decline during the American session and bottomed at 0.9155, the lowest level since August 5. The Euro is falling for the fourth-day in-a-row versus the Pound, on its way to the first weekly gain since April.
GBP between UK data and the usual Brexit talk, EUR down
UK retail sales data released today surpassed expectation by showing an unexpected increase in July. Around the Brexit, no new critical information surged today so far. Rumors and speculations are all around, having no impact on the Pound.
The Euro today was falling against the Pound and accelerated to the downside across the board following comments from European Central Bank board member Olli Rehn. He said the stimulus package to be announced in September should be significant and impactful and that it could be larger than market expectations. EUR/USD printed fresh lows under 1.1100 after those comments, adding to Euro’s overall weakness.
EUR/GBP Levels
To the downside, support levels are seen at 0.9150 followed by 0.9125 (August 2 & 5 low) and 0.9085. On the upside, short-term resistance levels are now seen at 0.91800, 0.9225 (Aug 14 low) and 0.9250 (Aug 15 low).
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.
