Both the single currency and the Sterling remain under pressure on Friday, prompting EUR/GBP to deflate from session tops in the 0.8530 area.
EUR/GBP looks to Trump/May
The European cross has practically shrugged off yesterday’s deep sell off to lows in the vicinity of 0.8470 following a significant drop in the EUR in response to a strong pick up in the demand for the US Dollar.
EUR/GBP is thus reverting four consecutive sessions of losses backed by the renewed GBP strength. Recall that the British Pound has been recently supported by a conciliatory tone from Theresa May regarding the future of the Brexit negotiations and positive results from the UK docket.
That said, market participants will closely follow today’s meeting between President D.Trump and PM T.May, with a potential trade deal on top of the agenda.
On the data front, EMU’s Private Loans rose 2.0% on a year to December, while M3 Money Supply expanded 5% during the same period. On Thursday, UK’s flash GDP figures showed the economy is expected to expand at an annualized 2.2% in Q4.
EUR/GBP key levels
The cross is now gaining 0.42% at 0.8515 facing the next hurdle at 0.8540 (high Jan.26) ahead of 0.8610 (20-day sma) and then 0.8652 (100-day sma). On the downside, a break below 0.8465 (high Jan.26) would expose 0.8446 (low Jan.3) and finally 0.8409 (200-day sma).
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.