- The cross reverses Monday’s pullback and tests 0.8600.
- (Non) ‘Indicative votes’ last night failed to make any progress in Brexit.
- PM May is expected to meet with her Cabinet later in the day.
The somewhat offered bias around the British Pound is now helping EUR/GBP to move higher and probe the area of daily highs near 0.8600 the figure.
EUR/GBP looks to further ‘indicative votes’
Daily gains in the European cross failed to extend further north of the key 0.8600 handle earlier on Tuesday, although the bid stance remains well and sound for the time being.
The Sterling came under further pressure today after ‘indicative votes’ at the House of Commons failed to clinch majority last night, opening the door for extra uncertainty. As things stands now, the UK could leave the EU without a deal on April 12 or try to clinch a longer extension.
In the UK docket, Construction PMI stayed below the 50 threshold in March, coming in at 49.7, a tad below forecast. In the euro area, Producer Prices surprised to the downside, rising at a monthly 0.1% during February and 3.0% from the year earlier.
Later in the day, UK PM Theresa May will hold a Cabinet meeting, where another vote on her Brexit plan would be in the centre of the debate.
EUR/GBP key levels
The cross is advancing 0.16% at 0.8570 and faces the next hurdle at 0.8596 (high Apr.2) seconded by 0.8648 (high Mar.29) and finally 0.8663. On the downside, a break below 0.8525 (low Apr.1) would aim for 0.8483 (low Mar.27) and then 0.8471 (2019 low Mar.13).
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