EUR/GBP moves to fresh 6-month tops beyond 0.9030

  • EUR/GBP extends the rally above the 0.90 mark.
  • GBP-selling gives further wings to the cross.
  • UK jobs report came in mixed earlier in the day.

The increasing selling pressure around the British Pound has now lifted EUR/GBP to fresh multi-month peaks beyond 0.90 the figure.

EUR/GBP boosted by GBP-weakness

The European cross is up for the second consecutive session on Tuesday, managing well to break above the multi-session consolidative pattern and finally leaving behind the critical 0.9000 handle.

The Sterling gained extra downside pressure today following the sharp rebound in the greenback and mixed reports from the UK labour market. In fact, the jobless rate stayed put at 3.8% and Claimant Count Change ticked higher by 38.0K during June. On another side, the key Average Earnings Index +Bonus expanded more than expected 3.4% during May.

On the Brexit front, candidates to succeed Theresa May, Boris Johnson and Jeremy Hunt, left the ‘no deal’ scenario well on the table on Monday after deeming the North Ireland backstop as ‘dead’

What to look for around GBP

Rising uncertainty in the UK political scenario plus rising chances of a Brexit ‘no deal’ are expected to keep the downside pressure on the Sterling well and sound for the foreseeable future. In the UK economy, poor results from key fundamentals continue to add to the sour prospects for the economy in the months to come and collaborate further with the bearish view on the currency. On another direction, the overall tone from the BoE appears to have shifted towards a more dovish gear, while markets have started to price in the likeliness of a rate cut at some point in Q3/Q4.

EUR/GBP key levels

The cross is gaining 0.42% at 0.9031 facing the next hurdle at 0.9042 (monthly high Jul.16) seconded by 0.9062 (high Jan.11) and finally 0.9092 (2019 high Jan.3). On the other hand, a break below 0.8955 (21-day SMA) would expose 0.8872 (low Jun.20) and then 0.8826 (low Jun.5).

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.

Feed news

Latest Forex News

Editors’ Picks

GBP/USD extends gains toward 1.31 after upbeat UK wage figures

GBP/USD is extending its gains and advancing toward 1.31 after UK wage figures beat expectations with 3.2% annually. The unemployment rate remained at 3.8% in November. 


EUR/USD recaptures 1.11 amid upbeat German figures, USD weakness

EUR/USD is trading above 1.11 after the German ZEW Economic Sentiment beat with 26.7 points. Presidents Trump and Macron agreed not to slap tariffs on each others' countries. The US dollar is retreating.


Market delays the trip to the moon

The crypto markets continue to turn to a new bullish phase. This turnaround began at the beginning of the year after a consolidation phase that started in mid-2019. 

Read more

Gold retreats from 2-week tops, drifts into negative territory

Gold failed to capitalize on its early uptick to near two-week tops and dropped to fresh session lows, around the $1560 region in the last hour.

Gold News

USD/JPY: Weaker near 110.00 amid China virus fears, BOJ's status-quo

The Japanese yen retains the bid tone following the Bank of Japan's (BOJ) status-quo, keeping USD/JPY under pressure near the 110 level amid risk-off market profile. S&P 500 futures drop 0.40% while the US Treasury yields are down over 1.50%, as the sentiment is hit by the coronavirus outbreak.