- EUR/GBP bounces off 2020 lows, back above 0.8300.
- GBP loses momentum following UK PM spokesman comments.
- UK jobs, CPI, Retail Sales, PMI expected later this week.
The renewed offered bias around the quid is helping EUR/GBP to extend the rebound to levels beyond 0.8300 the figure.
EUR/GBP focused on risk trends, data
The euro has started the week with renewed optimism against the backdrop of decreasing concerns regarding the Chinese COVID-19, which is also sponsoring the improved sentiment in the broader risk complex.
The British pound has faded initial gains after UK PM Johnson’s spokesman poured cold water over optimism over a UK-EU trade agreement, saying that the UK is not looking for anything special when comes to trade negotiations with the EU.
In the data space, the sterling is expected to be in centre of stage later this week in light of the release of the UK’s labour market report (Tuesday), January’s inflation figures (Wednesday), Retail Sales (Thursday) and the Services PMI (Friday). on the EUR-side, the ECB will publish its Accounts from the latest meeting (Thursday) ahead of preliminary PMIs in core Euroland at the end of the week.
EUR/GBP key levels
The cross is up 0.34% at 0.8329 and faces the next hurdle at 0.8433 (21-day SMA) seconded by 0.8471 (55-day SMA) and then 0.8537 (weekly/monthly high Feb.4). On the flip side, a breach of 0.8295 (2020 low Feb.13) would expose 0.8275 (2019 low Dec.13) and then 0.8248 (monthly low July 2016).