EUR/GBP in 3-day highs near 0.8580 on GBP selling

  • The Sterling loses ground and pushes the cross to fresh tops.
  • Brexit negotiations in centre stage ahead of key vote.
  • Government in talks with DUP for support ahead of vote.

The now softer tone in the British Pound is lifting EUR/GBP to fresh 3-day highs in the 0.8575/80 band.

EUR/GBP focused on Brexit vote

The European cross is reverting Friday’s pullback and advances to the vicinity of the 0.8600 handle on the back of a renewed selling pressure hitting the Sterling.

In fact, GBP is deflating further today after Chancellor P.Hammond said earlier in the day that there won’t be any meaningful vote later in the week if the government cannot get support from the DUP and Tory MPs.

It is worth recalling that PM Theresa May called for a third meaningful vote on her plan to leave the European Union at some point this week (Wednesday?) following two defeats and after the House of Commons voted against a ‘no deal’ scenario and an extension of the Article 50 during last week.

In the UK calendar, it will be a busy week for the Sterling as the labour market report is due tomorrow, inflation figures on Wednesday, Retail Sales and the BoE meeting on Thursday and Public Sector financial figures on Friday.

What to look for around GBP

The Sterling is expected to remain under scrutiny this week in light of another meaningful vote on May’s UK-EU divorce plan. The House of Commons will likely vote on Wednesday although it appears to all be hinging on a potential agreement between the Government and the DUP.

EUR/GBP key levels

The cross is gaining 0.66% at 0.8569 and a breakout of 0.8580 (high Mar.18) would open the door to 0.8604 (21-day SMA) and finally 0.8675 (high Mar.11). On the flip side, the next support lines up at 0.8471 (2019 low Mar.13) seconded by 0.8402 (monthly low Feb.22 2017) and then 0.8382 (monthly low May 10 2017).

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 surges above 1.1100 as Trump announces steps against China

EUR/USD is trading above 1.1100, up on the day. President Trump said he orders companies to search Chinese imports for drugs. Earlier he criticized Powell's lack of action. 


GBP/USD jumps above 1.2250 on USD weakness

GBP/USD is trading close to the monthly highs above 1.2250 as the US dollar falls following Powell's hint of cutting rates and Trump's angry response. 


USD/JPY plummets to ten-day lows below 106 as Trump goes berserk on Twitter

The USD/JPY came under strong selling pressure in the last hour and erased nearly 100 pips as US President Donald Trump's latest rant on Twitter forced investors to seek refuge and ramped up the demand for safe-haven JPY. 


Gold gains more than $30, eyes 2019 highs on Trump’s tweet

Gold continues to rise sharply amid concerns about the impact of the escalation in the US-China trade war. The demand for safe-haven assets emerged over the last hours, leading to a rally in the yellow metal. 

Gold News

Powell powerless against Trump's trade wars – US braces for recession, USD set to move

"The most powerful central banker in the world" – is how we and others characterize Fed Chair Jerome Powell. While that may be true – monetary policy is reaching its limits – especially in the face of a trade war.

Read more