EUR/GBP fades the spike to 0.8530, Trump/May on focus

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.

Feed news

Stop losing your money! 
Learn to trade with us!

24/7 signals + Webinars    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD pressured below 1.1900 amid virus concerns, USD rebound

EUR/USD is trading under pressure below 1.1900 amid US dollar rebound. A softer risk tone, Powell’s upbeat comments extend support to the greenback. ECB Panetta's remarks kept the euro bulls on the defensive and capped gains.


GBP/USD falls toward 1.3650 amid stronger USD, risk-off mood

GBP/USD pair is extending losses toward 1.3650, as the US dollar recovers ground across the board amid risk-aversion. Worries about the AstraZeneca covid vaccine and unrest in Northern Ireland further weigh on the spot.


$1,730 holds the key for XAU/USD bulls amid a modest USD strength

A modest pickup in the USD demand exerted pressure on gold for the second straight session. The risk-off mood, softer US bond yields extended some support and might help limit losses.

Gold News

Dogecoin pauses before continuing 35% ascent

Dogecoin breached an ascending triangle pattern on April 11, triggering a bull run. DOGE spiked nearly 17% in a single candle on the 12-hour chart hitting $0.080. Now, a retracement to the immediate support level at $0.071 seems likely before it starts to climb again.

Read more

S&P 500 Week Ahead: Bears hibernate as records keep getting smashed, earnings season awaits

Equity markets continue to set new records as the Nasdaq plays catch up. Fundamentals are backing bulls as Fed doves dampen inflation concerns. Earnings week ahead will likely add more fuel to the fire.

Read more