EUR/GBP upside lost momentum near 0.8650

  • The cross trades on the defensive near 0.8630.
  • EU Parliamentary elections now on focus.
  • Busy UK calendar includes job reports, CPI, BoE Carney.

The better mood surrounding the Sterling today is forcing EUR/GBP to give away part of the recent gains and slip back to the 0.8630 region.

EUR/GBP upside capped near 0.8650

After a brief test of daily highs in the 0.8650 region, the upside momentum in the European cross run out of steam and is now dragging it to the 0.8630/25 band.

GBP, in the meantime, has been helped by the broad-based upbeat tone in the risk-associated complex, while the absent of fresh news around the Brexit negotiations appears to be ‘good news’ for the British Pound for the time being.

Back to Brexit, it all now points that the UK will participate in the upcoming key EU Parliamentary elections at the end of May, although UK Foreign Secretary J.Hunt considered an ‘absolute priority’ for the country to leave the EU by May 23.

Other than Brexit, Cable will remain vigilant on this week’s docket, including the monthly jobs report tomorrow, inflation figures and the speech by BoE Governor M.Carney (Wednesday) and Retail Sales (Thursday).

EUR/GBP key levels

The cross is losing 0.16% at 0.8629 and faces the next hurdle at 0.8657 (high Apr.12) seconded by 0.8722 (high Mar.21) and finally 0.8764 (100-day SMA). On the downside, a break below 0.8588 (21-day SMA) would expose 0.8502 (low Apr.3) and then 0.8483 (low Mar.27).

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