The EUR/GBP cross gained some fresh traction and traded with mild positive bias on Friday, albeit has struggled to build on early gains further beyond mid-0.8500s.
Thursday's dovish remarks by the ECB President Mario Draghi failed to assist the cross to extend its sharp recovery move from the vicinity of 0.85 handle. The cross subsequently reversed all of its daily gains and finally settled in negative territory for the second consecutive session.
Also on Friday, subdued price action around both the majors (EUR/USD and GBP/USD) did little to provide any fresh impetus. However, a cautious mood, ahead of today's UK economic docket, has led to a relative underperformance of the British Pound against its European counterpart and has helped the cross to hold with minor gains.
Today's UK macro releases includes Halifax HPI, manufacturing and industrial production along side goods trade balance and construction output data. Apart from the economic releases, GBP trader will closely scrutinize comments from BOE Governor Mark Carney, where hints over monetary policy outlook might trigger a fresh bout of volatility around GBP crosses.
UK: Downside risks to manufacturing output – TDS
Technical levels to watch
Bulls would be eyeing for a sustained momentum beyond 0.8570 immediate resistance, above which the cross is likely to extend the up-move towards 0.8595-0.8600 region (200-day SMA) before darting back towards mid-0.8600s horizontal hurdle. Meanwhile, weakness back below 0.8530 level is likely to accelerate the slide back towards the 0.85 handle, en-route 0.8480-75 support area.
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 jumps above 0.6500 after hot Australian CPI data
AUD/USD extended gains and recaptured 0.6500 in Asian trading, following the release of hotter-than-expected Australian inflation data. The Australian CPI rose 1% in QoQ in Q1 against 0.8% forecast, providing extra legs to the Australian Dollar upside.
USD/JPY hangs near 34-year high at 154.88 as intervention risks loom
USD/JPY is sitting at a multi-decade high of 154.88 reached on Tuesday. Traders refrain from placing fresh bets on the pair as Japan's FX intervention risks loom. Broad US Dollar weakness also caps the upside in the major. US Durable Goods data are next on tap.
Gold price cautious despite weaker US Dollar and falling US yields
Gold retreats modestly after failing to sustain gains despite fall in US Treasury yields, weaker US Dollar. XAU/USD struggles to capitalize following release of weaker-than-expected S&P Global PMIs, fueling speculation about potential Fed rate cuts.
Ethereum ETF issuers not giving up fight, expert says as Grayscale files S3 prospectus
Ethereum exchange-traded funds theme gained steam after the landmark approval of multiple BTC ETFs in January. However, the campaign for approval of this investment alternative continues, with evidence of ongoing back and forth between prospective issuers and the US SEC.
US versus the Eurozone: Inflation divergence causes monetary desynchronization
Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Fed might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone.