EUR/GBP fails to hold above 0.89, looks to close in the red for the third straight day


  • IMF's Lagarde warns over prolonged period of low growth in the euro area.
  • UK's Johnson wins the first ballot.

After closing the last two days in the negative territory, the EUR/GBP pair extended its slide on Thursday and dropped below the 0.89 mark. As of writing, the pair was down 0.12% on a daily basis as 0.8884.

Earlier today, the data published by Destatis showed that inflation in Germany as measured by the Consumer Price Index (CPI) stayed unchanged at 0.2% and 1.4% on a monthly and yearly basis, respectively, to match analysts estimates. Other data today revealed that industrial production in the euro area contracted by 0.5% on a monthly basis in April.

While speaking to reporters at the euro zone finance ministers in Luxembourg, International Monetary Fund (IMF) Chief Christine Lagarde argued that there was a risk of euro zone slipping into a prolonged period of low growth and low inflation.

On the other hand, in the absence of significant macroeconomic data releases from the UK, headlines helped the British pound gather strength on Thursday. Prime minister candidate Boris Johnson today won the first ballot with 114 votes and Jeremy Hunt came in second with 43 votes. Although this development doesn't necessarily mean that it will be easier for the UK to reach a desired Brexit outcome with Johnson as the next PM, the fact that he is leading the race by a wide margin hinted at unity in the Conservative Party to ease political concerns a little.

Technical levels to consider

EUR/GBP

Overview
Today last price 0.8884
Today Daily Change -0.0012
Today Daily Change % -0.13
Today daily open 0.8896
 
Trends
Daily SMA20 0.8837
Daily SMA50 0.871
Daily SMA100 0.8679
Daily SMA200 0.8782
Levels
Previous Daily High 0.8918
Previous Daily Low 0.8871
Previous Weekly High 0.8904
Previous Weekly Low 0.8824
Previous Monthly High 0.8876
Previous Monthly Low 0.8489
Daily Fibonacci 38.2% 0.8889
Daily Fibonacci 61.8% 0.89
Daily Pivot Point S1 0.8872
Daily Pivot Point S2 0.8849
Daily Pivot Point S3 0.8826
Daily Pivot Point R1 0.8919
Daily Pivot Point R2 0.8941
Daily Pivot Point R3 0.8965

 

 

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD stabilizing as US coronavirus cases continue to climb

EUR/USD is trading around 1.1250, pressured amid concerns about the spread of coronavirus in the US. Traders are digesting the upbeat Non-Farm Payrolls figures already out ahead of the long US weekend. 

EUR/USD News

GBP/USD attempting a bounce amid thin liquidity

GBP/USD is closer to 1.25, off the lows. Top-level EU-UK Brexit talks have been postponed until next week amid disagreements. The UK is continuing to reopen while US coronavirus cases are surging. 

GBP/USD News

Bitcoin must endorse the time of Ethereum has come

The crypto market remains in a choke point, and after signs of a possible upward shift yesterday, the market was once again disappointed to see Bitcoin in the low range of the $8900 to $9000 choke point.

Read more

Gold: There is a bearish signal on the 4-hour chart

Price action has been slow on Friday due to the bank holiday in the US as the nation celebrates independence day. This week has been an interesting one as there has been some good economic data but some very bad coronavirus news in the US. 

Gold News

S&P 500: Futures struggle to refresh two-week top

S&P 500 Futures prints mild loss of 0.10% while declining to 3,126 during the initial hour of Tokyo session on Friday. In doing so, the risk barometer fails to extend the previous four-day winning streak.

Read more

Forex MAJORS

Cryptocurrencies

Signatures