- EUR/GBP retakes the 0.9200 handle and above.
- GBP remains offered on USD-buying, Brexit.
- UK Halifax HPI contracted 0.2% MoM in July.
Following yesterday’s rejection from 2019 highs in the 0.9250 region and subsequent close on the negative territory, EUR/GBP has managed to regain some buying pressure and retake the 0.9200 neighbourhood.
EUR/GBP looks to Brexit, trade
Despite the recent choppy price action, the European cross manages well to keep the topside intact against the backdrop of rising concerns over the probability of a hard Brexit outcome on October 31 and persistent jitters on the US-China trade front.
In the meantime, both the Sterling and the shared currency are today suffering the pick up in the demand for the greenback as trade effervescence eased somewhat in past hours.
Further out, things remain the same around the Brexit limbo after PM Boris Johnson reiterated the country will leave the UK on October 31 and the Irish backstop remains the critical obstacle for the potential resumption of talks between Brussels and London.
In the docket, German Industrial Production unexpectedly contracted at a monthly 1.5% during June, while in the UK, house prices tracked by the Halifax Index dropped 0.2% inter-month in July and rose 4.1% over the last twelve months.
EUR/GBP key levels
The cross is gaining 0.14% at 0.9214 and faces the immediate hurdle at 0.9259 (2019 high Aug.6) followed 0.9306 (2018 high Aug.29) and finally 0.9411 (monthly high October 2009). On the other hand, a drop below 0.9088 (low Jul.31) would open the door to 0.9050 (21-day SMA) and then 0.8891 (monthly low Jul.25).
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