EUR/GBP testing 5-month tops around 0.8900

EUR/GBP moves higher and tests 0.8900 earlier in the session.
The buying interest in EUR sustains the upside.
EMU flash inflation figures next of relevance in the docket.

Pablo Piovano FXStreet

The continuation of the buying pressure around the European currency is lifting EUR/GBP to new multi-month tops in the critical 0.8900 neighbourhood.

EUR/GBP looks to data, Brexit

The European cross keeps the impressive rally well and sound in the first half of the week, posting losses in only three sessions since early May and gaining nearly 5% since lows in sub-0.8500 levels (May 6).

In addition, increasing uncertainty around the Brexit negotiations plus mounting speculations over the successor of Theresa May at Number 10 has been collaborating with the downbeat note around the British Pound.

On this front, President Trump said the US is ready to clinch a trade deal with the UK post-Brexit, while French President Emmanuel Macron reiterated there will be no further delays after the October 31 Brexit deadline.

Data wise, preliminary inflation figures in Euroland for the month of May are coming up next ahead of the critical ECB event on Thursday.

EUR/GBP key levels

The cross is gaining 0.20% at 0.8894 and a break above 0.8902 (high Jun.4) would expose 0.9062 (low Jan.11) and finally 0.9092 (2019 high Jan.3). On the flip side, the next down barrier aligns at 0.8834 (10-day SMA) seconded by 0.8783 (200-day SMA) and then 0.8724 (low May 21).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD remains on the back foot below 1.1850

EUR/USD is back on the back foot on Wednesday, slipping below the 1.1850 area as the US Dollar picks up some modest traction. The move comes as traders position ahead of a busy run of US data and the release of the FOMC Minutes. Adding to the pullback are reports that the ECB’s Lagarde may step down before completing her term.

GBP/USD flirts with daily highs near 1.3580

GBP/USD manages to set aside two consecutive daily declines and trades with slight gains in the 1.3580 zone on Wednesday. Cable’s uptick comes despite acceptable gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.