EUR/GBP holds on to 0.8580 amid ECB cautious approach


  • EUR/GBP remains muted in the early European session on Monday.
  • The Euro coerces amid pre-Fed anxiety, ECB mindful outlook.
  • Sterling gains on improved economic and inflation expectations.

The EUR/GBP price is keeping the trading nerve very tightly on Monday as the new trading week begins. The cross-currency pair is adhering to the prevailing downside momentum with no meaningful traction for the time being. 

At the time of writing, EUR/GBP trades at 0.8577, down 0.01% for the day.

The broader sentiment remains volatile ahead of the FOMC meeting later in the week. The Euro is under selling pressure after ECB left its rates unchanged and confirmed the bond purchasing program at a higher speed than the previous months, even though the central bank improved its forward guidance on inflation and growth.

In the latest development, ECB President Christine Lagarde said in an interview that the eurozone economy is on the right recovery path, still, it will be too early to talk about the tapering measures. This highlights the caution amid the policymakers, which weighs the performance of the Euro.

On the other hand, the British pound is relatively in a better position in terms of economic recovery and outlook. However, the Brexit concerns continue to haunt the cable on the fear of a probable trade war between the  UK and EU.

Meanwhile, experts believe that delay in economic re-opening by June 21 to another four weeks will likely have no impact on the sterling performance.

The Bank of England (BOE) has already hinted about the less accommodative monetary policy in the coming policy meetings.

The diverging stance on monetary policy makes GBP valuations attractive to investors as compared to the shared currency.

EUR/GBP additional levels

EUR/GBP

Overview
Today last price 0.8578
Today Daily Change -0.0001
Today Daily Change % -0.01
Today daily open 0.8579
 
Trends
Daily SMA20 0.861
Daily SMA50 0.8633
Daily SMA100 0.8652
Daily SMA200 0.8843
 
Levels
Previous Daily High 0.8606
Previous Daily Low 0.8568
Previous Weekly High 0.8643
Previous Weekly Low 0.8568
Previous Monthly High 0.8711
Previous Monthly Low 0.8561
Daily Fibonacci 38.2% 0.8583
Daily Fibonacci 61.8% 0.8592
Daily Pivot Point S1 0.8563
Daily Pivot Point S2 0.8547
Daily Pivot Point S3 0.8526
Daily Pivot Point R1 0.8601
Daily Pivot Point R2 0.8622
Daily Pivot Point R3 0.8638

 

 

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