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

EUR/GBP

Overview
Today last price 0.9314
Today Daily Change 0.0113
Today Daily Change % 1.23
Today daily open 0.9201
 
Trends
Daily SMA20 0.8803
Daily SMA50 0.8588
Daily SMA100 0.8555
Daily SMA200 0.8749
 
Levels
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

 

 

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