- The cross is putting the 0.8800 area to the test on Tuesday.
- Improved sentiment around GBP drags the cross lower.
- UK jobless rate dropped to 4.0% in November.
The improved sentiment around the British Pound is forcing EUR/GBP to lose further ground and drop to new 2-day lows in sub-0.8800 levels.
EUR/GBP weaker post-data, focused on Brexit
The European cross gathered extra downside pressure today following auspicious results from the UK labour market.
In fact, the jobless rate dropped to 4.0% in November while the key Average Earnings including Bonus expanded more than expected 3.4% during November. In addition, Claimant Count Change rose by 20.8K contracts, a tad above estimates.
Price action around the cross remains vigilant on Brexit developments, as always. In this regard, the UK Parliament will vote on January 29 on the recent Brexit ‘Plan B’ and the potential amendments to May’s deal.
In the euro area, German and EMU Economic Sentiment gauged by the ZEW Survey improved a tad in January.
EUR/GBP key levels
The cross is now losing 0.19% at 0.8797 and a breakdown of 0.8763 (2019 low Jan.17) would expose 0.8723 (monthly low Oct.10 2018) and finally 0.8655 (monthly low Nov.13 2018). On the flip side, the next hurdle lines up at 0.8862 (200-day SMA) followed by 0.8902 (55-day SMA) and then 0.8985 (high Jan.15).
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