EUR/GBP trades without direction below 0.9000


  • EUR/GBP remains directionless around 0.8980.
  • EMU Industrial Production surprised to the upside in May.
  • BoE’s G.Vlieghe said a ‘no deal’ Brexit could drag rates to zero.

The rally in EUR/GBP have met a very tough hurdle in the 0.9000 neighbourhood, although it so far manages to keep the trade close to that psychological handle.

EUR/GBP supported by the 10-day SMA

The European cross is down for the second session in a row today, coming under pressure after briefly recording new 6-month tops beyond the critical barrier at 0.90 the figure earlier in the week.

Persistent selling bias around the Sterling stemming from UK political uncertainty and absent news from the Brexit front has been lending support to the solid up move since May’s low in sub-0.8500 levels.

Back to Brexit and the BoE, MPC member G.Vlieghe said earlier in the day that leaving the EU without a deal could prompt rates to drop to the vicinity of zero, although, on the opposite side, he added that higher rates could be justified if such a scenario motivates inflation expectations to deanchor.

In the data space, EMU’s Industrial Production rebounded in May, expanding at a monthly 0.9%.

What to look for around GBP

Rising uncertainty in the UK political scenario and around the Brexit process is expected to keep the Pound under permanent pressure for the time being. In the UK economy, poor results from key fundamentals continue to add to the sour prospects for the economy in the months to come and collaborate further with the bearish view on the currency in the foreseeable future. On another direction, the overall tone from the BoE appears to have shifted towards a more dovish gear, while markets have started to price in the likeliness of a rate cut at some point in Q3/Q4.

EUR/GBP key levels

The cross is receding 0.06% at 0.8978 and a break below 0.8948 (21-day SMA) would expose 0.8872 (low Jun.20) and then 0.8826 (low Jun.5). On the flip side, the next hurdle is located at 0.9010 (monthly high Jul.10) seconded by 0.9062 (low Jan.11) and finally 0.9092 (2019 high Jan.3).

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 remains depressed but off daily lows

The EUR/USD pair is recovering from a daily low of 1.1216, although holding in negative territory for the day. US preliminary Michigan Consumer Sentiment Index improved by less-than-anticipated in July, coming in at 98.4 vs. the 98.5 expected.

EUR/USD News

GBP/USD trading marginally lower daily basis but above 1.2500

The Pound gave back some of its Thursday’s gain on dollar’s relief. The GBP/USD pair broke a daily descendant trend line coming from June’s high and holds above it, leaving little room for sellers to act.

GBP/USD News

USD/JPY: bears pausing, still in control

Japanese National Inflation steady at 0.7%YoY in June. US Michigan Consumer Sentiment Index expected at 98.5 in July. USD/JPY corrective advance falling short of signaling an interim bottom in place.

USD/JPY News

Gold consolidates around $ 1440, eyes US data for fresh direction

Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.

Gold News

Something has spooked the Fed

We wish we knew what it is. Wild talk of the US joining Japan and Europe with zero or negative return on the 10-year is or should be very frightening.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •