EUR/GBP holding in 0.93 handle as US dollar eases off

  • EUR/GBP taking up a bid in a continuation of bullish correction.
  • EUR/GBP has added around 4.5% since last week despite COVID-19 spread in Europe. 
  • UK current account deficit is the largest in the G10 FX, a problem for GBP.

EUR/GBP is trading with a 0.9155 and 0.9387 range, currently oscillating in the higher end around 0.9321 as the euro firms, taking advantage of a slightly less prominent US dollar as the Federal Reserve floods the markets will USD in open-ended QE. 

The US dollar, which has been the FX and money market's go-to asset since the explosion of global COVID-19 pandemic cases over the past couple of weeks, has finally slowed down in its pace, giving back some ground to the euro and pound. The Fed's latest action is explained here and how it impacts USD.

EUR/GBP bulls have fared better of late though, rallying from 0.8995 and scoring up around 4.5% on the bid to the aforementioned high as investors fear the worst for the UK economy given the government's indecisive action plan to stave off a full-blown Italian style COVID-19 crisis.

Also, the UK current account deficit is the largest in the G10 FX space and has been a long-standing negative for GBP. Consequently, GBP/USD reached the lowest level since 1985 while the dollar funding squeeze turned the screw. 

All eyes on government stimulus solutions 

Markets will continue to monitor COVID19 developments and progress on rescue packages in Europan and the UK, but at this stage of the game, the Bank of England has some wiggle room left not much, and it really will be all down to the governments. 

EUR/GBP levels


Today last price 0.9314
Today Daily Change 0.0113
Today Daily Change % 1.23
Today daily open 0.9201
Daily SMA20 0.8803
Daily SMA50 0.8588
Daily SMA100 0.8555
Daily SMA200 0.8749
Previous Daily High 0.9339
Previous Daily Low 0.8996
Previous Weekly High 0.95
Previous Weekly Low 0.8988
Previous Monthly High 0.8644
Previous Monthly Low 0.8282
Daily Fibonacci 38.2% 0.9127
Daily Fibonacci 61.8% 0.9208
Daily Pivot Point S1 0.9018
Daily Pivot Point S2 0.8836
Daily Pivot Point S3 0.8675
Daily Pivot Point R1 0.9361
Daily Pivot Point R2 0.9521
Daily Pivot Point R3 0.9704



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

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.


GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 


XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more