EUR/GBP firmer, opens the door for a test of 0.9000


  • EUR/GBP moves to new multi-month tops beyond 0.8970.
  • B.Johson remains the frontrunner in the race to succeed T.May.
  • German official said there is no chance to renegotiate withdrawal deal.

The selling pressure around the British Pound stays well and sound today and is now helping EUR/GBP to climb further and print fresh 5-month tops in the 0.8970/75 band.

EUR/GBP focused on UK politics

The rally in the European cross remains everything but abated so far today, up for the seventh week in a row and gaining nearly 6% since early May lows in the sub-0.8500 region.

The relentless sell off in the Sterling has been sustaining the up move in the cross to levels last seen in mid-January, always sustained by increasing uncertainty around UK politics, lack of any progress in the Brexit negotiations and deteriorating UK fundamentals.

No news regarding the race to Number 10, where former London mayor and Brexiteer Boris Johnson remains the clear frontrunner.

Later in the day, ECB’s M.Draghi will speak at the Sintra Forum ahead of final CPI figures in Euroland for the month of May and the release of the ZEW survey. In the UK docket, BoE’s M.Carney will also speak in Sintra ahead of the central bank’s meeting tomorrow.

What to look for around GBP

Heightened uncertainty around the Brexit negotiations and May’s successor keeps the pressure on the Sterling intact for the time being. In the UK economy, recent results from the labour market lent some oxygen to GBP, although the broader softness in fundamentals remain the name of the game. Additionally, the current steady stance from the Bank of England appears justified by below-target inflation figures, downbeat results from key economic fundamentals and somewhat slowing momentum in wage inflation pressures, all adding to speculations of a ‘no-hike’ this year despite some calls signalling a potential hike in November.

EUR/GBP key levels

The cross is gaining 0.16% at 0.8964 and a break above 0.8974 (monthly high Jun.17) would expose 0.9062 (low Jan.11) and finally 0.9092 (2019 high Jan.3). On the other hand, initial support lines up at 0.8871 (low Jun.12) followed by 0.8863 (21-day SMA) and then 0.8826 (low Jun.5).

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD hovers around 1.1130 in dull session, ECB eyed

The EUR/USD pair has recovered from a fresh weekly low of 1.1105 but remains depressed. Market players now waiting for ECB’s monetary policy, the last one presided by Mario Draghi.

EUR/USD News

GBP/USD attempting to recover after parliament slowed down the Brexit process

GBP/USD is moving up toward 1.29, trying to recover after parliament rejected the fast-track process that PM Johnson wanted for approving his Brexit deal. An extension to Article 50 and elections are on the cards.

GBP/USD News

USD/JPY struggles below mid-108.00s, over one-week lows

The Greenback held weaker against its Japanese counterpart, with the USD/JPY pair struggling below mid-108.00s, or over one-week lows set earlier this Wednesday.

USD/JPY News

Gold climbs higher toward $1,500 on risk-aversion

The XAU/USD pair gained traction on Wednesday and rose toward the upper-limit of its two-week-old range near the critical $1,500 handle supported by risk-off flows.

Gold News

If you are a "Hodler" here is where you could find support in Bitcoin

Today the price of Bitcoin fell and the price is now headed toward the 7,310.00 support used as a resistance zone on the week of the 3rd September 2018.

Read more

Forex MAJORS

Cryptocurrencies

Signatures