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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD holding onto gains amid trade wars, ahead of German IFO

EUR/USD is trading around 1.1150, consolidating its gains after the escalation in US-Sino trade wars sent US yields and the greenback lower. German IFO Business Climate is next.


GBP/USD consolidates amid Brexit uncertainty

GBP/USD is trading below 1.2300, consolidating its gains. The UK and the EU have been blaming each other for a potential no-deal Brexit. US-Sino tensions are in play as well.


USD/JPY drops back below 105.50 amid US-Japan trade news

USD/JPY filled in the bearish opening gap and jumped to 105.78 highs amid upbeat comments from Chinese VIce-Premier Liu on trade before reversing sharply below the 105.50 level following reports on US-Japan trade progress. 


Gold: Risk-off rally stalls after US, China aim to calm trade war fears

Having surged to the fresh high since April 2013, Gold declines to the intra-day low of $1,538.50, before taking rounds to $1541.60, by the press time of early Monday. China shows readiness to have a calm discussion with the US.

Gold News

Forex Today: Trade wars paint markets in red, Brexit looks worse, and central banks are limited

Here is what you need to know on Monday, August 26th: The US-Sino trade war is painting global markets in the red. The US dollar is losing some ground to major currencies as yields plunge, while it gains against commodity currencies. Gold is rising and oil is falling.

Read more