EUR/GBP focused on 0.8700 and below – Danske Bank

Pablo Piovano FXStreet

Senior Analyst at Danske Bank Jens Pedersen noted the relevance of the 0.8700 level in the European cross.

Key Quotes

“GBP remains supported by rising Brexit optimism and EUR/GBP fell close to 0.87 last night. There are a lot of reports in the media that both the EU and the UK officials could soon declare that ‘decisive progress’ has been made in negotiations”.

“Technically, the key support level is seen just below 0.87 in EUR/GBP (0.8698) and a break below this level could open up for additional GBP appreciation near term. However, Theresa May still faces a major hurdle in getting the deal approved by her cabinet and later by parliament”.

“Hence, while the knee-jerk reaction to a Brexit deal announcement is likely to send EUR/GBP lower, we could see the cross quickly rebounding again until a deal has been approved by parliament. Hence, expect GBP to remain very volatile in coming months, and corporates hedging GBP income should consider taking advantage of the recent GBP appreciation to build up hedges for 2019. We recommend hedging via ratioed risk reversals”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD recedes to daily lows near 1.1770

EUR/USD is losing some momentun, easing to daily troughs around 1.1770 on turnaround Tuesday. The pair’s pullback comes amid solid gains in the US Dollar, all amid lingering uncertainty around US tariffs ahead of comments from Fed officials.

GBP/USD comes under pressure below 1.3500, focus on BoE

GBP/USD is on the defensive again on Tuesday, hovering below the 1.3500 mark as the Greenback stages a firm rebound after two soft sessions. Investors, in the meantime, are expected to closely follow BoE official’s comments later in the day.

Gold fades the advance, back to $5,100

Gold is giving back a good portion of the recent multi-day rally, receding to the boundaries of the $5,100 region per troy ounce amid the marked rebound in the Greenback. In the meantime, markets’ attention remain on upcoming comments from Fed speakers.

Crypto Today: Bitcoin, Ethereum, XRP come under renewed pressure amid ETF outflows, tariff uncertainty

Bitcoin, Ethereum and Ripple are trading under increasing selling pressure at the time of writing on Tuesday, as market participants navigate renewed tariff uncertainty. The Crypto King holds above $63,000, down 2% intraday from its $64,656 open.

AI-scare trade and tariff uncertainty takes hold

It was quite a day, with AI-disruption fears and tariff uncertainty triggering a risk-off session. By now, it's nearly impossible to have missed the Supreme Court's 6-3 decision that struck down US President Donald Trump's reciprocal tariffs last Friday.

Dogecoin, Shiba Inu, and Pepe extend losses on bearish signals

Meme coins are facing renewed selling pressure amid fading broad risk-on sentiment so far this week, with Dogecoin, Shiba Inu, and Pepe extending their losses after recent corrections.