- EUR/GBP continues to trade with a positive bias just below one-month highs in the 0.8650s.
- GBP underperformance comes despite reports that the UK is set to pass the Covid-19 herd immunity threshold by next Monday.
EUR/GBP continues to trade with a positive bias just below one-month highs in the 0.8650s, having rebounded from earlier session lows in the 0.8620s. The pair currently trades with gains of around 10 pips or about 0.1% on the day and continues to swing either side of its 50-day moving average at 0.8643.
Driving the day
Though not the worst-performing G10 currency on the day (that crown goes to USD, with CAD coming in a close second from bottom), GBP is not having a great session. This underperformance comes despite reports in the UK press that the country is set to pass the Covid-19 herd immunity threshold by next Monday, as well as strong UK data in the form of much higher-than-expected Construction PMI reading for the month of March (which came in at 61.7 versus forecasts for 54.6) and a much higher than expected RICS Housing Survey index figure (which came in at 59.0 versus forecasts for 55.0).
In terms of the euro, though the single currency is outperforming sterling, it is otherwise not having a particularly great session and is lower versus the likes of NZD, JPY, CHF and AUD. Euro traders have had to content with a hefty dose of ECB commentary as well as the release of the minutes of the ECB’s March meeting; as expected, the tone of the minutes was very dovish, with ECB members agreeing that it is important to provide assurance that the governing council will be maintaining highly accommodative monetary policy conditions for as long as necessary and sees no risk of overheating.
Meanwhile, ECB President Christine Lagarde noted that the pandemic and related containment measures will continue to have a negative impact on economic activity in the Eurozone in the short term, but that activity should pick up later in the year. ECB Chief Economist Philip Lane reiterated that favourable financial conditions must be maintained, ECB’s Klass Knot noted that he hopes the pace of asset purchases under the PEPP can be reduced by June.
In other Eurozone relevant news, French PM Castex noted that more than 10M people have now received their first Covid-19 vaccine, one week ahead of schedule. Further goods news with regards to the bloc’s up until now sluggish vaccine rollout may provide euro with a boost.
|Today last price||0.8656|
|Today Daily Change||0.0014|
|Today Daily Change %||0.16|
|Today daily open||0.8642|
|Previous Daily High||0.8664|
|Previous Daily Low||0.8582|
|Previous Weekly High||0.8563|
|Previous Weekly Low||0.8493|
|Previous Monthly High||0.8674|
|Previous Monthly Low||0.8503|
|Daily Fibonacci 38.2%||0.8632|
|Daily Fibonacci 61.8%||0.8613|
|Daily Pivot Point S1||0.8595|
|Daily Pivot Point S2||0.8547|
|Daily Pivot Point S3||0.8513|
|Daily Pivot Point R1||0.8676|
|Daily Pivot Point R2||0.8711|
|Daily Pivot Point R3||0.8758|
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.