EUR/GBP ranges either side of the 0.8900 mark with focus elsewhere

  • EUR/GBP has nudged a little higher on Tuesday, with focus more on US fundamentals.
  • The pair swung either side of 0.8900 as bears continue to eye key support to the downside in the 0.8850s.

EUR/GBP has nudged a little higher on Tuesday, with focus more on US fundamentals (US Treasury Secretary nominee Janet Yellen’s testimony to Congress stole the limelight) as opposed to European fundamental themes. The pair has swung either side of the 0.8900 mark, with the bears still eyeing a test of key support to the downside in the 0.8850s.

Eurozone Update

Aiding the EUR are reports suggesting that Italian PM Giuseppe Conte is getting close to securing a majority in the Senate ahead of a confidence vote on his government. He needs to secure 161 votes in order to guarantee a majority and is currently reported to have around 156/157 votes, but this might be enough if the Viva Italia Party’s 18 members (who triggered the crisis that the government currently faces by pulling out of the coalition over disagreements on how the spend the EU Recovery Fund money) abstain. The latest reports suggest they will. At the very least, an election seems unlikely at this point, with a majority of Italian political parties preferring not to hold an election in the midst of the pandemic and before EU rescue funding is allocated.

In other news, Germany confirmed that it would be extending its current lockdown restrictions until at least 14 February, as indicated over the weekend. Meanwhile, ECB governing council member Mario Centeno spoke of the need to expand the euro’s international role, but noted that the eurozone will face a significant challenge in doing so. Finally, the reaction to the Tuesday morning session release of stronger than expected German ZEW numbers for January had limited impact, with focus instead on the more widely followed January Markit flash PMI release on Friday.

UK News

The latest daily UK Covid-19 statistics were mixed; on the one hand, cases rose 33,355, another decline and down from over 70K additional cases a little over a week ago. The rapid drop in the infection rate shows that the latest lockdown is working, or at the very least that after meeting with family and friends over Christmas (contributing to the spike to more than 70K cases per day), the nation has drastically reduced its number of social contacts. However, 1,610 were reported to have died after testing positive with Covid-19 in the last 28 days, a new record number daily number that suggests, as far as the hospitals are concerned, the worst is far from yet over.

Meanwhile, according to government sources, top officials are realising that tough restrictions are likely to remain in place in large UK cities perhaps even as late as May given the high level of infections. Much depends on what happens with the death rate over the coming weeks as more and more of the most vulnerable in the UK are vaccinated; most analysts assume there will be a fast drop off in the death rate as those most likely to die acquire immunity. As the death rate drops, policymakers are likely to have a more difficult time justifying why strict lockdowns should remain in place. Given its vaccination lead, the UK is still likely to be able to fully open up ahead of its developed market peers.

Elsewhere, Bank of England Chief Economist Andy Haldane sounded quite hawkish, as is typically the case; he said that QE is a temporary action to keep borrowing costs low and, somewhat interestingly in a world of central bankers who are for the most part desperate for more inflation, said that the UK does not need higher inflation that would cause borrowing costs to rise.


Today last price 0.8898
Today Daily Change 0.0009
Today Daily Change % 0.10
Today daily open 0.8889
Daily SMA20 0.8992
Daily SMA50 0.8997
Daily SMA100 0.9035
Daily SMA200 0.8991
Previous Daily High 0.8925
Previous Daily Low 0.8881
Previous Weekly High 0.9037
Previous Weekly Low 0.8866
Previous Monthly High 0.923
Previous Monthly Low 0.8929
Daily Fibonacci 38.2% 0.8908
Daily Fibonacci 61.8% 0.8898
Daily Pivot Point S1 0.8871
Daily Pivot Point S2 0.8854
Daily Pivot Point S3 0.8827
Daily Pivot Point R1 0.8916
Daily Pivot Point R2 0.8942
Daily Pivot Point R3 0.896



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

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD falls toward 1.19 after robust US Nonfarm Payrolls data

EUR/USD is trading above 1.19 after dipping below that number in response to the US Nonfarm Payrolls, which showed an increase of 379K jobs in February. Higher yields in response to Powell are keeping the dollar bid.


GBP/USD recovers after post-NFP dip below 1.38

GBP/USD is trading above 1.38 bus till down the day. The US gained 379.000 jobs, roughly double than expected and supporting the dollar. The Senate's stimulus debate is eyed.


XAU/USD battles 1700 level

Gold is staging a rebound toward $1,700 amid proift-taking ahead of the weekend but remains on track to close the third straight week in the negative territory.

Gold News

Ethereum price primed for a swift recovery as the network prepares for a major update in July

Ethereum price aims for a significant recovery towards $2,000. A major upgrade scheduled for July intends to fix the problem with gas fees on Ethereum. ETH miners are not happy with the decision.

Read more

US Dollar Index pushes higher to 92.20 on stellar Payrolls

The march north in the greenback remains unabated and trade in fresh 2021 highs beyond the 92.00 hurdle when tracked by the US Dollar Index (DXY).

US Dollar Index News