EUR/GBP remains pressured near 0.8420 amid risk-on mood

EUR/GBP trades with caution on Tuesday in the early Asian trading hours.
German October IFO Survey, dovish ECB, and downbeat data weighs on the euro
UK Brexit Minister sets December deadline to resolve NI border issue.

Rekha Chauhan Independent Analyst

EUR/GBP remains subdued on Tuesday in the Asian session. The cross-currency touched the high of 0.8469 in the US session but failed to sustain the momentum. At the time of writing, EUR/GBP is trading at 0.8429, up 0.06% for the day.

The prospect of the shared currency was weighed down by worrisome German headlines. The October IFO Survey showed that the Business climate shranked by more than estimated to 97.7. The assessment of the current situation improved to 100.1, although expectations were sharply down, to 95.4.

In addition to that, the Bundesbank monthly report suggested that the full-year growth in 2021 was likely to be lower than the June forecast of 3.7%, due to persistent supply chain constraints. The projections strengthen the European Central Bank’s (ECB) dovish stance on monetary policy. The ECB Governing Council member and Spanish central bank chief Pablo Hernandez de Cos said recent developments anticipate a significant downward economic outlook revision for 2021 while pointing at the supply-chain issues and rising costs.

It is worth mentioning that, S&P 500 Futures are trading at 4,568, up 0.24% for the day.

On the other hand, the sterling gains were limited, following the UK’s Brexit Minister David Frost concern about delay to finalising UK’s participation in £80bn Horizon Europe scheme, which blew open a fresh Brexit row with Brussels. As per Sky news, the UK Brexit Minister has issued a December deadline for the European Union (EU) to resolve the Northern Ireland Protocol.

As for now, traders are waiting for the European Central Bank (ECB) Lending Survey, and German Gfk Consumer Confidence to gauge market sentiment data.

EUR/GBP additional levels

EUR/GBP

Overview
Today last price	0.8433
Today Daily Change	-0.0001
Today Daily Change %	-0.01
Today daily open	0.8434

Trends
Daily SMA20	0.8498
Daily SMA50	0.8537
Daily SMA100	0.8546
Daily SMA200	0.8605

Levels
Previous Daily High	0.847
Previous Daily Low	0.8428
Previous Weekly High	0.8469
Previous Weekly Low	0.8422
Previous Monthly High	0.8658
Previous Monthly Low	0.8501
Daily Fibonacci 38.2%	0.8444
Daily Fibonacci 61.8%	0.8454
Daily Pivot Point S1	0.8418
Daily Pivot Point S2	0.8402
Daily Pivot Point S3	0.8376
Daily Pivot Point R1	0.846
Daily Pivot Point R2	0.8486
Daily Pivot Point R3	0.8502

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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