EUR/GBP extends losses and approaches 0.9000 psychological level

  • EUR/GBP extends its reversal from 0.9175 and approaches 0.9000.
  • The pound remains bid amid the strong GBP/USD rebound.
  • Longer-term, the euro is on a positive trend towards 0.9308 – Commerzbank.

The euro is losing ground against the British pound for the second consecutive day. The pair has lost approximately 1.6% after pulling back from three-month highs at 0.9175 and is approaching the psychological level at 0.9000.

The euro loses ground against a stronger pound

The common currency is giving away gains after a nearly 3% rally over the last three weeks. The strength of the GBP/USD has pushed the pound higher across the board in spite of the looming concerns about Brexit uncertainty and the positive eurozone data seen earlier today.

According to the Eurozone Manufacturing PMI from June, economic activity in the sector improved to 47.4, beating expectations of a 46.9 reading, which shows that the industrial sector moves closer to the 50 level, the limit between activity contraction and growth. 

In the UK, the Markit Manufacturing PMI has remained at 50.1 in June, unchanged from the previous month and broadly in line with the market expectations.

EUR/GBP to target 0.9308 in three-months – Commerzbank

On the bigger picture, the pair remains positive, and according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, aiming to 0.9308 over the next three-months, EUR/GBP is at three-month highs and already approaching the 61.8% retracement at 0.9184. Above here will trigger a move to 0.9308/23, this is the location of the 78.6% retracements of the move seen since March and the 2017 high at 0.9308 and this represents our initial upside target zone.” 

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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD loses 1.1800 amid escalaing US-Sino tensions

EUR/USD dips sub-18 after the US reported an increase of 1.763 million jobs in July, better than estimated but pointing to a deceleration. Escalating Sino-American tensions are boosting the dollar and fiscal talks are eyed. 


GBP/USD resumes decline, weighed by UK concerns, US-China conflict

GBP/USD trades at fresh weekly lows below 1.3050 as the dollar got a sudden boost from mounting tensions between the world's two largest economies. UK Chancellor Rishi Sunak said the furlough scheme that is underpinning the economy cannot last forever.


Gold: Meteoric rally falters, closes the week below $2050

Dollar comeback poured cold water on gold’s record-breaking rally. US-China woes, US stimulus deadlock and upbeat NFP boosted the USD. The focus stays on US-China trade talks amid light US docket next week.

Gold News

Bitcoin may extend the recovery once Gold resumes the rally

Gold retreated from the recent highs, but the sentiments are still bullish. Cryptocurrencies resumed the upside, some altcoins are demonstrating strong gains. ETH/BTC stopped the downside correction and settled at $0.03300.

Read more

WTI extends slide toward $41, on track to post weekly gains

Crude oil prices continued to fall on Friday and the barrel of West Texas Intermediate (WTI) touched a daily low of $41.05 before recovering modestly.

Oil News