EUR/GBP offered, bounces off lows near 0.9050

  • EUR/GBP met support in the mid-0.9000s.
  • German Business Climate dropped to 86.1 in March.
  • UK CPI rose 0.4% MoM and 1.7% YoY in February.

The continuation of the buying interest in the sterling keeps the downside pressure well and sound around EUR/GBP, forcing it to drop as low as the 0.9050 region.

EUR/GBP drops to 3-day lows

EUR/GBP is down for the second session in a row on Wednesday, briefly testing the mid-0.9000s earlier in the session, or 3-day lows, just to rebound and regain the 0.9100 mark soon afterwards.

In the meantime, the rally in the British pound remains well and sound and keeps recovering ground lost, particularly vs. the greenback after last week’s “flash crash”. Indeed, further strength in the quid came after the recently announced extra stimulus by the Federal Reserve and the subsequent impact on the buck.

In the docket, German Business Climate measured by the IFO indicator dropped more than estimated for the current month along with the Business Expectations and Current Assessment components. In the UK, inflation figures tracked by the CPI showed consumer prices rose 0.4% inter-month in February, reversing the previous contraction, and gained 1.7% from a year earlier.

What to look for around GBP

The British Pound keeps correcting higher so far this week, bouncing off levels last seen in times of the Plaza Accord in 1985 vs. the greenback and multi-month lows vs. the euro. The extra stimulus from the Fed is lending oxygen to both currencies at the moment, although they’re not out of the woods yet. In addition, GBP is expected to remain under the microscope in light of the upcoming EU-UK trade negotiations to kick in later this year, while shaky UK fundamentals plus the impact of the coronavirus on the domestic and global economy open the door to the palpable possibility that the country could slip into recession in the near future.

EUR/GBP key levels

The cross is losing 0.30% at 0.9143 and a drop below 0.9054 (weekly low Mar.25) would expose 0.8994 (low Mar.20) and then 0.8896 (21-day SMA). On the flip side, the next resistance lines up at 0.9499 (2020 high Mar.19) seconded by 0.9649 (monthly high January 2009) and then 0.9804 (monthly high December 2008).

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

AUD/USD holds onto recovery gains above 0.6050, RBA eyed

AUD/USD stays within the two-hour-old 0.6080-6100 range, currently around 0.6090, while stepping forward for Tuesday’s Asian session. In doing so, the pair holds onto Monday’s recovery gains, mainly due to slightly positive coronavirus (COVID-19) data from Europe, ahead of the key RBA meeting.


USD/JPY: Mildly bid above 109 amid mixed sentiment

Having benefited from the recovery in virus data from global hot-spot, while marking a three-day winning streak on Monday, USD/JPY buyers seem to catch a breath around 109.25 amid the early Asian session on Tuesday.


Gold: Refreshes four-week high, $1,685 on bulls’ radar

Gold prices remain on the front foot while taking the bids near $1,668, up 0.70%, amid the Asian session on Tuesday. In doing so, the bullion refreshes the four-week high with an intraday peak of $1,674.15 while also marking a fifth consecutive daily gain.

Gold News

WTI fragility amid OPEC+ delays

The price of oil has been under some pressure in recent trade considering the delays to the OPEC meeting which had been scheduled for Monday but put back until Thursday. Markets are otherwise enjoying some recovery amid signs of a slow down in COVID-19 contagion. 

Oil News

Johnson Hospitalised, Oil Awaits Treatment

Sterling slipped after UK Prime Minister Boris Johnson was moved to the intensive care unit for coronavirus treatment, but the broad risk trade remained strong on optimism with slowing growth in the number of Corona virus cases. 

Read more