EUR/GBP trims gains and re-focuses on 0.8530

  • EUR/GBP fades he move to 0.8555.
  • GBP-recovery weighs on the cross.
  • ECB’s Lagarde speaks later in the day.

The now better tone in the British pound is forcing EUR/GBP to leave behind initial gains and recede to the 0.8530/25 band.

EUR/GBP remains sidelined so far in 2020

The European cross is adding to Friday’s advance against the backdrop of a generalized better tone in the greenback, which in turn is weighing on both the shared currency and the quid.

In the meantime, the cross keeps the rangebound theme intact so far this year, with gains capped by the 0.8600 neighbourhood and the downside limited to the mid-0.8400s.

So far, the cross is seen following the broader risk appetite trends, although the upcoming UK-EU negotiations on the trade front promise to be a key driver for the rest of the year, all coupled with prospects of a rate cut by the BOE, speculations of a recovery of fundamentals in the euro bloc and the ‘wait-and-see’ stance from the ECB.

Later in the day, ECB’s C.Lagarde is due to speak in what will be the sole event in the Old Continent at the beginning of the week. Later in the week, the UK docket includes the labour market report (Tuesday), Mortgage Approvals (Wednesday) and services PMI (Friday). On this side of the Channel, the ECB will hold its monthly meeting on Thursday while advanced PMIs in the core Euroland are expected on Friday.

EUR/GBP key levels

The cross is gaining 0.12% at 0.8533 and faces the next hurdle at 0.8595 (2020 high Jan.14) seconded by 0.8658 (100-day SMA) and finally 0.8779 (200-day SMA). On the flip side, a breakdown of 0.8487 (weekly low Jan.17) would expose 0.8454 (2020 low Jan.8) and then 0.8275 (2019 low Dec.13).

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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD stable at around 1.1700, waiting for a fresh catalyst

The EUR/USD pair has spent most of the last trading session of the day stuck around 1.1700. Upbeat US Durable Goods Orders spurred modest demand for high-yielding assets.


GBP/USD hovers around 1.37. dismissing UK petrol crisis

GBP/USD is trading at around 1.37, as sterling shrugs off the drying up of some petrol stations due to Brexit-related lorry driver shortages.


Gold bulls not interested

Upbeat US data lifted the market’s mood and weighed on the dollar. US Treasury yields continue climbing to multi-month highs. XAU/USD is marginally higher on a daily basis but bears retain control.

Gold News

Shiba Inu stagnation period might result in 20% correction

Shibu Inu price continues to contract and cause frustration for bulls and bears. However, Shibu Inu is trading near the apex of the triangle pattern it is currently inside. Therefore, a breakout lower is likely to occur very soon.

Read more

Conference Board Consumer Confidence: Unhappy but still spending

Consumer Confidence expected to rise slightly to 114.5 in September. August’s confidence reading at 113.8 was the lowest since February. Weak Consumer Confidence did not damage August Retail Sales or Durable Goods Orders.

Read more