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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD remains depressed below the 1.1600 threshold

 EUR/USD struggles to regain the 1.1600 level after falling to a fresh weekly low of 1.1580. The dollar benefited from solid US macroeconomic data but softer yields capped its gains.


GBP/USD accelerates slide to 1.3760

 GBP/USD advanced to a daily high of 1.3830 during the European session but reversed its direction in the second half of the day. Fading BOE rate hike expectations and Brexit-related headlines weigh on the pound.


Gold losing its shine and the 1,800 threshold

Gold edged lower on Wednesday, trading as low as $1,782.31 a troy ounce. The greenback strengthened ever since the day started against its commodity-rival, getting a boost early in the American session from upbeat US data and rallying equities.

Gold News

Small correction ahead of cryptos before next leg up

BTC struggles cross above the Tenkan-Sen, could create profit-taking and a corrective move. ETH breaks out above a bullish continuation pattern, but momentum is weak. XRP continues to lag BTC and ETH but is poised to catch up in relative performance.

Read more

Bank of Canada Rate Decision: Inflation prospects headline policy review Premium

The Bank of Canada is expected to continue tapering its asset purchases and maintain its current rate posture when it concludes it meeting on Wednesday at 10:00 am EDT. Overnight rate projected to be unchanged at 0.25%.

Read more