• 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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD struggling to hold above 1.1000

The EUR/USD pair is trading at one-month lows just above the 1.1000 level, undermined by softer-than-expected EU data and persistent uncertainty surrounding the US-China trade relationship.


GBP/USD stuck around 1.2850

The Pound traded lifeless this Tuesday, confined to familiar levels against most rival despite mixed employment data and mounting tensions heading into December’s election.


USD/JPY: Recovering within range ahead of Trump’s words

Japan’s Machinery Tool Orders collapsed in October, according to preliminary estimates. US President Trump is due to deliver a speech, may refer to the US-China trade deal. USD/JPY neutral for the week at around 109.20, downside potential well limited.


Gold: Remains vulnerable near 3-month lows

Gold remained depressed through the mid-European session on Tuesday and is currently placed near three-month lows, just above $1450 level. 

Gold News

Bitcoin: Google's threat, halving, and the best cost strategy

Google threat Bitcoin ecosystem with its Sycamore Quantum Computer. According to experts, the next halving in the Bitcoin mining rewards will occur on May 14, 2020. Dollar-Cost Averaging strategy has yielded a return of over 500 % since 2014.

Read more