EUR/GBP drops to lows near 0.8580

The better tone in the Sterling is dragging the cross lower.
UK manufacturing PMI surprised to the upside.
Further Brexit ‘indicative votes’ coming up later today.

Pablo Piovano FXStreet

Both the Sterling and the single currency are trading on a better tone at the beginning of the week and are dragging EUR/GBP to fresh lows in the 0.8580 region.

EUR/GBP now looks to Brexit votes

The European cross came under further downside pressure on Monday following an improved mood in the risk-associated space and the subsequent rebound in the demand for GBP and EUR.

Positive UK manufacturing PMI surprised to the upside today, advancing to 55.1 in March, while flash inflation figures in Euroland came in below expectations for the month of March, noting headline consumer prices are expected to rise at an annualized 1.4% and 0.8% when comes to Core prices.

Regarding Brexit, a new round of ‘indicative votes’ are expected later today, while uncertainty around the future of May’s government remain on the rise.

EUR/GBP key levels

The cross is retreating 0.22% at 0.8582 and a break below 0.8567 (100-hor SMA) would aim for 0.8483 (low Mar.27) and then 0.8471 (2019 low Mar.13). On the other hand, the next up barrier emerges at 0.8648 (high Mar.29) seconded by 0.8669 (55-day SMA) and finally 0.8722 (high Mar.22).

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Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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