EUR/GBP up on GBP-selling, cautiousness ahead of data


  • EUR/GBP bounces off the 0.8430 region, 2019 lows.
  • Sterling loses some shine, recedes from recent tops.
  • Markets’ attention remains on the UK elections next week.

Some profit taking sentiment is hurting the British pound at the end of the week, helping EUR/GBP to regain some poise and advance to the mid-0.8400s.

EUR/GBP up on GBP-selling, cautiousness ahead of data

After three consecutive daily pullbacks - including fresh yearly lows around 0.8430 on Thursday - the European cross is now attempting a rebound to the 0.8450 region.

In fact, the sterling is giving away part of its recent strong gains, exacerbated after the breakout of the 1.30 key handle vs. the greenback, and all amidst increasing likeliness of a Conservative majority win at next week’s general elections.

In addition, the pound managed to derive extra buying interest after the always-relevant UK Services PMI surprised to the upside for the month of November at 49.3. Despite the positive reading, the index still remains in the contraction territory. Earlier today, house prices tracked by the Halifax Index rose 1.0% inter-month in November and 2.1% from a year earlier, both prints coming in above estimates.

Later in the day, PM Boris Johnson and Labour’s Jeremy Corbyn will be face-to-face in a BBC One TV debate, scheduled for 20:30 BST. Across the ocean, investors’ attention is expected to remain on the US calendar, where November’s Payrolls will be in centre stage.

EUR/GBP key levels

The cross is advancing 0.13% at 0.8449 and faces the next hurdle at 0.8540 (21-day SMA) seconded by 0.8605 (high Nov.22) and finally 0.8662 (55-day SMA). On the downside, a drop below 0.8430 (2019 low Dec.5) would expose 0.8382 (monthly low May 2017) and then 0.8297 (2017 low April 18).

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD extends losses toward 1.1250 amid coronavirus concerns

EUR/USD is trading closer to 1.1250 as concerns about US coronavirus cases are growing. Eurozone finance ministers are meeting ahead of next week's summit.  US PPI and updated COVID-19 statistics are awaited.

EUR/USD News

GBP/USD pressured under 1.26 amid risk-off mood, Brexit uncertainty

GBP/USD is trading below 1.26, off the highs. Rising US coronavirus cases are pushing markets lower and the safe-haven dollar higher. Concerns about Brexit and the UK refusal to participate in the EU coronavirus vaccine scheme are weighing on sterling. 

GBP/USD News

Gold: Well-defined battle lines point to range play around $1800

Gold nurses losses around the $1800 following Thursday’s good two-way businesses. The risk-off theme amid COVID-19 concerns continues to bode well for the US dollar. 

Gold News

Canada Net Change in Employment June Preview: June is looking better and better

Job gains expected to more than double in June. Unemployment rate to drop to 12% from 13.7 in May. Ivey PMI was twice its forecast in June, highest since Nov 2019. USD/CAD would benefit from better June job figures.

Read more

WTI extends Thursday’s drop as virus cases rise

Oil extends overnight sell-off as virus concerns dominate the market sentiment. The resurgence of virus cases in the US has fueled lockdown fears. The US on Thursday registered 65,551 new cases, a record for a 24-hour period.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures