EUR/GBP slides farther below 0.87 handle on Greece worries, German CPI next

Haresh Menghani FXStreet

The EUR/GBP cross remained heavily offered for the second consecutive session and extended its pull-back from near 2-1/2 month highs touched last Friday.

The latest news reports that Greece threatened to opt out of £7.5bn in debt repayments due in July, if Brussels blocked a debt deal at the next meeting of Euro-area minister on June 15th, was seen weighing heavily on the shared currency and has been a key driver of pair's retracement back below the 0.8700 handle.

Against the backdrop of incoming UK election polls, revealing a tighter race for the upcoming UK general election on June 8, and the latest Brexit developments, the already weaker sentiment surrounding the British Pound helped limited further losses, at least for the time being.

Moving ahead, traders on Tuesday would now take cues from the release of German prelim CPI print for May and with no macroeconomic data due for release from the UK, renewed worries over Greece's financial situation now seems to act as a key determinant of the pair's movement on Tuesday.

Technical levels to watch

A follow through weakness below 0.8675 level (session low), the cross is likely to accelerate the slide towards 0.8650-45 support en-route 0.8625-20 area. Meanwhile on the upside, any recovery move back above the 0.8700 handle now seems to confront resistance near 0.8725-30 region, which if cleared could lift the cross beyond Friday's swing high resistance near mid-0.8700s towards 0.8775 level ahead of the 0.8800 handle.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

AUD/USD rises to 0.6950 as USD slips on Fed's Warsh

AUD/USD regains traction and extends the bounce toward 0.6950 in the Asian session on Friday. Fed Chair Warsh's comments reinforce the selling pressure on the US Dollar, allowing the pair to stretch higher. Warsh said that he remains committed to delivering price stability without giving away anything on future interest rate path.

USD/JPY falls in symc with USD, gives up 158.00 after Warsh's speech

USD/JPY has come under fresh selling pressure and gives up 158.00 in the Asian session on Friday amid the emergence of fresh US Dollar selling. Fed Chair Warsh's non-committal commentary on the future tightening path, weighs on the US Dollar and the pair.

Gold looks vacillating above $4,150

Gold alternates gains with losses below the key $4,200 mark per troy ounce on Friday. The yellow metal’s irresolute price action comes in response to a modest pullback in the US Dollar and a tepid recovery in US Treasury yields across the board.

Bitcoin steadies at $82,000: The five forces crushing the Uptober rally

Crypto markets have remained under pressure so far in October, with Bitcoin (BTC) sliding below $80,000 earlier this week before recovering to around $82,000 on Friday, as macroeconomic headwinds and cooling demand weigh on the market.

The Fed just got a second hot inflation number. Here's what the diesel signal is really saying

The Federal Reserve (Fed) faces a renewed inflation challenge after two consecutive reports showed price pressure intensifying across the US economy. September's Consumer Price Index (CPI) confirmed accelerating consumer inflation, while the Producer Price Index (PPI) revealed an even sharper rise in business costs. Behind both reports lies a common factor: energy prices.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.