- Euro losses momentum during the American session, eyes on the ECB meeting.
- Pound holds onto gains amid limited price action.
- The EUR/GBP pair broke below 0.9060 and fell to 0.9044, hitting a fresh daily low. As of writing, it trades at 0.98055, falling for the second day in a row, but it remains above Monday’s low.
The lack of headlines regarding Brexit on Tuesday appears to be helping the pound. The euro weakened during the last hours trimming gains versus the Swiss franc, and it was unable to rally further against a weak dollar. The key event ahead is Thursday’s European Central Bank meeting.
In Europe, the worst performer is the Turkish lira that fell to new record lows. The USD/TRY is up 1.15% at record highs near 8.20.
Technical outlook
In the short term the EUR/GBP is making higher lows and lower highs, a potential triangle patter that if broken could lead to a sharp move. A consolation on top of 0.9090 should clear the way to more gains, while under 0.9040, the pound could drop to test the 0.9000 critical support.
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