EUR/GBP retreats from tops beyond 0.90


  • EUR/GBP moves higher and clinches tops above 0.90.
  • UK GDP figures surprised to the upside.
  • UK Industrial Production contracted 0.6% MoM in August.

The rebound in the British Pound is now prompting EUR/GBP to recede from earlier tops beyond the key 0.90 the figure.

EUR/GBP eases from 4-week highs

The increasing selling pressure around the Greenback is fuelling the upbeat momentum in both the Sterling and the shared currency today, motivating the European cross to gyrate around the 0.90 neighbourhood, or new multi-week highs.

On the Brexit front, everything continues to orbit around the Irish backstop amidst the re-emergence of the ‘no deal’ scenario as a potential outcome of the negotiations and rising speculations on early elections, all ahead of the key EU Summit on October 17-18.

In the docket, mixed readings sparked mixed results around the Pound after GDP figures showed the economy contracted at a monthly 0.1% in August and expanded 0.3% on the three-months ended in August and 1.1% on a yearly basis. On the poor side of the docket, Industrial Production contracted 0.6% MoM during August and Manufacturing Production dropped 0.7% inter-month, confirming the deterioration in the sector remains unabated. Further data saw the trade deficit widening a tad to £9.81 billion during the same period.

EUR/GBP key levels

The cross is gaining 0.18% at 0.9003 and faces the initial hurdle at 0.9010 (monthly high Oct.10) seconded by 0.9021 (55-day SMA) and finally 0.9127 (23.6% Fibo of the May-August rally). On the flip side, a drop below 0.8885 (21-day SMA) would expose 0.8829 (200-day SMA) and then 0.8785 (monthly low Sep.20).

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD pressured around 1.13 after jump in US jobs

EUR/USD is trading around 1.13, down after US Non-Farm Payrolls shocked with a leap of 2.5 million jobs in May, contrary to all projections. The greenback is gaining while stocks are falling, a correlation breakdown. ECB stimulus previously supported the euro.

EUR/USD News

GBP/USD retreats from highs

GBP/USD is trading below 1.27, off the highs. The pound is struggling after Chief EU Negotiator Barnier reported little progress in Brexit talks. Robust US jobs support the dollar.

GBP/USD News

Gold sees weekly closing below $1700 - a caution for bulls

The steady decline in Gold prices (futures on Comex) accelerated on Friday, as the rates closed the week below the 1700 mark for the first time in three weeks at 1688.35. A weekly closing below the key 1700 level is unlikely to bode well for the bulls.

Gold News

Institutional demand exceeds Bitcoins supply

Greyscale floods the market with fresh money to satisfy the demand of its clients. Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences. Market remains at risk on the verge of new bullish territory.

Read more

WTI rallies above $39 as focus shifts to OPEC+ meeting

Crude oil prices built on Thursday's modest gains and rose sharply on Friday boosted by the upbeat market mood optimism surrounding Saturday's OPEC+ meeting. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures