EUR/GBP eases from tops, up little around 0.8560-55 region

EUR/GBP gained positive traction on Monday and snapped two days of the losing streak.
Rising inflationary pressure in the Eurozone continued underpinning the shared currency.
The UK fuel crisis acted as a headwind for the British pound and provided a modest lift.

Haresh Menghani FXStreet

The EUR/GBP cross maintained its bid tone through the first half of the European session, albeit has retreated few pips from daily tops and was last seen hovering near around the 0.8560 region.

The cross stalled last week's retracement slide from over two-month tops and attracted some buying near the 0.8540 area on the first day of a new trading week. The uptick assisted the EUR/GBP cross to snap two consecutive days of the losing streak and was sponsored by a modest pickup in demand for the shared currency.

Despite the risk-off mood, the US dollar struggled to preserve its intraday gains and moved further away from the highest level since September 2020 touched last week. This, in turn, provided a modest lift to the euro, which remained well supported by signs of increasing inflationary pressures in the Eurozone.

The flash consumer inflation report released on Friday showed that the headline CPI in the region likely accelerated to a 3.4% YoY rate in September from 3.0% previous. Adding to this, core CPI is seen rising to 1.9% YoY from 1.6% YoY in August, deepening concern among policymakers amid a record run in energy prices.

On the other hand, the British pound's relative underperformance comes amid the increasing fuel crisis in the United Kingdom. This, along with renewed tensions between Britain and France over post-Brexit fishing rights, further acted as a headwind for the sterling and provided a minor lift to the EUR/GBP cross.

It, however, remains to be seen if bulls are able to capitalize on the move or refrain from placing any aggressive bets amid absent relevant market moving economic releases. This makes it prudent to wait for a sustained move back above the 0.8600 mark before placing fresh bullish bets around the EUR/GBP cross.

Technical levels to watch

EUR/GBP

Overview
Today last price	0.8564
Today Daily Change	0.0007
Today Daily Change %	0.08
Today daily open	0.8557

Trends
Daily SMA20	0.8567
Daily SMA50	0.8548
Daily SMA100	0.8568
Daily SMA200	0.8646

Levels
Previous Daily High	0.8624
Previous Daily Low	0.8544
Previous Weekly High	0.8658
Previous Weekly Low	0.8526
Previous Monthly High	0.8658
Previous Monthly Low	0.8501
Daily Fibonacci 38.2%	0.8575
Daily Fibonacci 61.8%	0.8594
Daily Pivot Point S1	0.8526
Daily Pivot Point S2	0.8495
Daily Pivot Point S3	0.8446
Daily Pivot Point R1	0.8606
Daily Pivot Point R2	0.8655
Daily Pivot Point R3	0.8686

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

AUD/USD stays weak above 0.6900 after China’s trade data

AUD/USD struggles to capitalize on the previous day’s recovery and stays defensive on the 0.6900 level following the narrowing of trade surplus in China. Increased December Fed rate hike bets allows the US Dollar to pause its decline and weigh on the pair. US CPI data is next of note for the major.

USD/JPY retakes 158.00 on weak Japanese data; focus shifts to US CPI

USD/JPY attracts some dip-buyers and retakes 158.00 in the Asian session on Tuesday as a fall in Japan’s Household Spending offsets hawkish BoJ Summary of Opinions, undermining the Japanese Yen. Moreover, Fed hike bets support the safe-haven US Dollar and the currency pair. The market focus now shifts to the release of the crucial US CPI report.

Gold approaches $4,000 following US inflation data

Gold surrenders a big chunk of Monday’s advance and approaches the key $4,000 mark per troy ounce on Tuesday. The precious metal’s decline follows the solid performance of the US Dollar and rising US Treasury yields after US inflation figures.

Pi Network rebounds from record lows, exits oversold territory as momentum improves

Pi Network (PI) shows a strong recovery on Tuesday, up over 7% after recording its all-time low of $0.0624 the previous day. PI token’s appeal in the derivatives market shows minor improvement, with Open Interest rising to $6.21 million.

Five risks for the global economy in 2027

From AI bubbles to geopolitical breakthroughs, these are some of the five ways why this outlook could go wrong – or right: A severe correction in US stocks triggered by an AI meltdown, second-round inflation effects emerge at scale or geopolitical de-escalation delivers an energy peace dividend.

Gold reclaimed $4,100. Tuesday’s CPI test decides if it holds

Gold (XAU/USD) starts the week on a positive note, reclaiming the $4,100 psychological level as the US Dollar (USD) retreats from its recent highs. The precious metal recovers from Friday's losses, although investors remain cautious ahead of Tuesday's US Consumer Price Index (CPI) report, which could determine the next direction for Bullion.