EUR/GBP recedes from tops near 0.8540

EUR/GBP meets resistance near the 10-day SMA.
Tory-Labour gap reduced further and weighs on the pound.
UK November manufacturing PMI surprised to the upside.

Pablo Piovano FXStreet

EUR/GBP gapped to the upside at the beginning of the week although it has been trading with a selling bias since then.

EUR/GBP focused on UK elections

The European cross remains under pressure on Monday and keeps trading within the broader bearish scenario, which is particularly exacerbated by the downside bias surrounding the euro and the alternating trends around the British pound.

Still in the UK, latest election poll results kept showing a Conservative lead, although the gap vs. the Labour Party keeps shrinking.

In the UK docket, November’s manufacturing PMI rebounded to 48.9, surpassing at the same time initial estimates (48.3). The reading, however, remains within the contraction territory and keeps showing that the slowdown in the sector still appears unabated.

Later in the day, ECB’s C.Lagarde is expected to testify to the European Parliament, while November’s US ISM Manufacturing will be the salient event in the NA session.

EUR/GBP key levels

The cross is advancing 0.13% at 0.8522 and faces the next barrier at 0.8566 (21-day SMA) seconded by 0.8605 (high Nov.22) and then 0.8667 (78.6% Fibo of the May-August rally). On the other hand, a breach of 0.8499 (monthly low Nov.28) would expose 0.8488 (monthly low May 6) and finally 0.8471 (2019 low Mar.13).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.