EUR/GBP muted around 0.8900 after EU PMIs

Haresh Menghani FXStreet

The EUR/GBP cross has been confined within a narrow trading band on Monday and has now erased its tepid recovery gains to session peak level of 0.8914.

Currently hovering around 0.8900 handle, the cross had a muted reaction to better-than-expected flash Euro-zone PMI prints for October. The composite Euro-zone flash manufacturing PMI came-in at 53.3 as against 52.6 expected, while services PMI printed 53.5 versus expected reading of 52.5.

The ongoing recovery staged by both, the GBP/USD and the EUR/USD majors, has failed to provide any directional impetus for the EUR/GBP cross and the cross was seen consolidating around a two-week low touched last week in the aftermath of ECB-led intense selling pressure around the shared currency.

Next on tap would be the release of CBI Industrial Orders expectations from UK, which again is likely to be a non-event for the cross.

Technical levels to watch

Immediate resistance beyond 0.8915 (session high) is pegged at 0.8930 level above which the cross is likely to extend the rebound towards 0.8975 resistance area. On the downside, a follow through selling pressure below 0.8890 now seems to accelerate the slide towards 0.8840 intermediate support en-route its next major support near 0.8800 handle.

Sell 100%

Buy 0%

Avg Sell Price 0.8938

Avg Buy Price 0.0000

Liquidity Distribution

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.