EUR/GBP pulls back from 50-DMA, eyes on German/UK data, Brexit headlines

EUR/GBP declines from the 13-day high to 0.8535 while heading into the European session on Friday. The pair has been benefiting from the British pound’s (GBP) recent weakness and the overall strength of the Euro (EUR). Though, buyers are catching a breath ahead of the key data, events.

Earlier during the day, Germany’s Finance Ministry crossed wires, via Reuters, while expecting subdued exports in the months to come. Further, the European Council President, Charles Michel, signalled to revoke the US pressure and have close trade ties with China.

The EUR has been benefitting from the US dollar’s (USD) weakness amid a slew of downbeat economics and the European Central Bank (ECB) policymakers’ broadly positive statements.

On the contrary, the GBP has been bearing the burden of sluggish data and risks of a hard Brexit. The UK PM Boris Johnson will put forward his Brexit Withdrawal Agreement Bill (WAB) in front of the parliament today and the same is likely to get through considering Conservatives’ majority. However, the European Union (EU) leaders are quite pessimistic about the leaders’ pledge to “get Brexit done.”

The economic calendar has Germany’s GfK Consumer Confidence for January among the first releases, followed by the final reading of the UK’s third-quarter (Q3) Gross Domestic Product (GDP). It’s worth mentioning that preliminary reading of the Eurozone Consumer Confidence for December month will be the last one to follow during the week.

Technical Analysis

A daily closing beyond 50-Day Simple Moving Average (DMA) level of 0.8557 will drive prices beyond 0.8600 while 0.8465 and 0.8390 are likely immediate supports to watch during the pair’s pullback.