EUR/GBP navigates around 0.8580 as risk-on prevails

The better tone in the risk-associated universe is prompting EUR/GBP to trade in a choppy manner so far on Friday.

EUR/GBP found support near 0.8520

The European cross keeps the erratic performance this week in response to alternating risk appetite trends and unusual volatility in the Sterling.

In fact, GBP saw its trading range exacerbated yesterday after very auspicious results from UK’s retail sales during last month, crushing initial estimates and reverting the contraction seen in the previous month.

On the EUR side, the recovery of the greenback - albeit short-lived - prompted the European currency to surrender part of its weekly strong gains, although it quickly found dip-buyers which have sustained the current bounce.

In the meantime, EUR/GBP stays on track to close its fourth week with gains after falling to the vicinity of 0.8310 in mid-April.

While the UK calendar is empty today, Current Account figures for the month of March and Consumer Confidence gauged by the European Commission are due in the euro region seconded by speeches by ECB’s Board members V.Constancio and P.Praet.

EUR/GBP key levels

The cross is now losing 0.07% at 0.8579 and a breakdown of 0.8557 (100-day sma) would aim for 0.8549 (55-day sma) and finally 0.8521 (low May 18). On the flip side, the immediate hurdle aligns at 0.8597 (200-day sma) seconded by 0.8613 (high May 18) and then 0.8618 (high May 17).

 

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