- The cross extends the up move to the mid-0.8600s.
- PM Theresa May defended the delay of Article 50.
- EMU Industrial Production contracted less than expected in February.
The continuation of the upbeat mood in the risk-associated complex continue to support the weekly up move in EUR/GBP, this time testing 3-week highs in the 0.8650/60 band.
EUR/GBP bid on risk-appetite trends
The European cross is prolonging the upside momentum following the recent breakout of the critical 0.8600 barrier, managing to reclaim the 0.8660 area against the backdrop of a sustained traction in the riskier assets.
On the GBP-side, scepticism around the Brexit negotiations appears to prevail for the time being, particularly after the recently announced delay in Article 50 to October 31 in spite of PM May’s comments that the UK will look to leave the UE as soon as possible.
In the docket, Industrial Production in the euro area contracted 0.2% MoM during February and 0.3% from a year earlier, both prints coming in above previous estimates.
EUR/GBP key levels
The cross is advancing 0.36% at 0.8652 and faces the next hurdle at 0.8722 (high Mar.21) seconded by 0.8766 (100-day SMA) and finally 0.8824 (200-day SMA). On the downside, a break below 0.8583 (21-day SMA) would expose 0.8502 (low Apr.3) and then 0.8483 (low Mar.27).
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