- EUR/GBP keeps the positive note so far in the mid-0.8800s.
- After printing tops near 0.8870 on Friday, the cross recedes some ground.
- Uncertainty around Brexit and UK government weigh on Sterling.
The continuation of the bid tone around the shared currency is propping up the daily gains in EUR/GBP around the mid-0.8800s.
EUR/GBP upside faced resistance near 0.8870
The upside momentunm in the European cross managed to climb to fresh tops in the 0.8870/75 band on Friday, although the up move lacked of follow through, sparking today’s mild correction lower to the 0.8840 region.
On the Brexit front, Foreign Secretary Jeremy Hunt said earlier today he would favour a ‘no deal’ scenario in case he becomes Primer Minister. In this regard, candidates to succeed Theresa May keep flowing in, although there are still no favourites among them.
In addition, UK manufacturing PMI disappointed expectations during May, adding extra selling pressure to the British Pound. Later in the week, Construction PMI is due tomorrow ahead of the more relevant gauge of the services sector on Wednesday, Governor Carney’s speech on Thursday and house prices tracked by the Halifax index closing the calendar on Friday.
EUR/GBP key levels
The cross is gaining 0.02% at 0.8841 and a break above 0.8874 (monthly high May 31) would expose 0.9062 (low Jan.11) and finally 0.9092 (2019 high Jan.3). On the flip side, the next down barrier aligns at 0.8789 (low May 23) seconded by 0.8784 (200-day SMA) and then 0.8724 (low May 21).
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Extra gains in the pipeline above 0.6520
AUD/USD partially reversed Tuesday’s strong pullback and regained the 0.6500 barrier and beyond in response to the sharp post-FOMC pullback in the Greenback on Wednesday.
EUR/USD meets support around 1.0650
EUR/USD managed to surpass the key 1.0700 barrier in response to the intense retracement in the US Dollar in the wake of the Fed’s interest rate decision and Chair Powell’s press conference.
Gold surpasses $2,300 as Dollar tumbles
The precious metal maintains its constructive stance and trespasses the $2,300 region on Wednesday after the Federal Reserve left its FFTR intact, matching market expectations.
Bitcoin price reclaims $59K as Fed leaves rates unchanged
The market was at the edge of its seat on Wednesday to see whether the US Federal Reserve (Fed) would cut interest rates during the Federal Open Market Committee (FOMC) meeting.
The market welcomes the Fed's statement
The market has welcomed the Fed statement, and the S&P 500 is higher in its aftermath, the dollar is lower and Treasury yields are falling. There is still only one cut priced in by the Fed.