• The up move in the cross lost momentum near 0.87.
  • US-China trade jitters weigh on sentiment.
  • MPs will vote on May’s bill next month.

Renewed trade jitters have been putting the riskier assets under further pressure on Wednesday, forcing EUR/GBP to fade part of the recent rally.

EUR/GBP still targets 0.8700

After seven consecutive daily advances, the upside momentum in the European cross is now showing some signs of exhaustion just ahead of the critical barrier at 0.8700 the figure.

US-China trade concerns have re-emerged after some mild respite seen during early trade and keep hurting the risk-associated complex, dragging both the Sterling and the shared currency to daily lows vs. their main competitors.

In today’s calendar, and apart from the trade front, German and EMU advanced GDP figures came in on the weak side for the first quarter, adding to yesterday’s poor readings from the ZEW survey and collaborating with EUR selling.

News around Brexit noted that the deal sponsored by PM Theresa May could be put to the vote early next month regardless of whether the government and the opposition clinch an agreement or not.

What to look for around GBP

Market participants keep looking to cross-party talks between the government and the opposition party, although there is no significant progress yet. Recent publications from the industrial sector somewhat confirmed the rebound seen in the previous months, although the bounce in activity was exclusively driven by companies stockpiling in case of a ‘hard Brexit’ scenario rather than in response to a more ‘genuine’ increase in the sector. In addition, the current steady stance from the Bank of England appears justified by below-target inflation figures, mixed results from key economic fundamentals and somewhat slowing momentum in wage inflation pressures, all adding to already rising speculations of a ‘no-hike’ this year.

EUR/GBP key levels

The cross is losing 0.03% at 0.8678 and faces immediate contention at 0.8622 (21-day SMA) followed by 0.8598 (55-day SMA) and then 0.8488 (low May 6). On the upside, a surpass of 0.8691 (high May 14) would expose 0.8722 (high Mar.21) and finally 0.8794 (200-day SMA).

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 extends slide, nears the 1.1200 figure

The shared currency is suffering from speculation the ECB will steepen easing and German Business Sentiment falling by more-than-anticipated. Upbeat US Retail Sales sent the pair further down toward the 1.1200 figure.



GBP/USD collapsed to fresh 2019 lows

Robust employment data fell short of supporting the Pound, badly hurt from mounting fears about a hard-Brexit, after PM’s candidates, Johnson and Hunt said that the Irish backstop is “dead” and would seek for a new daily, something the EU is not willing to do.


USD/JPY climbs to 4-day tops above 108.30, retreats on Trump comments

The USD/JPY pair gained traction in the second half of the day and rose to a fresh session high of 108.36.


Gold keeps the red near $1410 level ahead of Powell’s speech

Gold finally broke down of its consolidative trading range and tumbled to fresh session lows, below $1410 level during the early North-American session.

Gold News

Gold in search of a firm direction, stuck in a range ahead of US data/Powell

Gold lacked any firm directional bias and seesawed between tepid gains/minor losses through the mid-European session on Tuesday.

Read more