- EUR/GBP exchanges gains with losses below the 0.90 mark.
- EUR weakness keeps the upside subdued for the time being.
- US Non-farm Payrolls will be the salient event later today.
The pick up in the demand for the greenback is motivating sellers to return to the single currency and the Sterling, in turn putting EUR/GBP under some pressure in the upper end of the weekly range.
EUR/GBP met support at the 10-day SMA at 0.8957
Despite today’s lack of direction, the European cross keeps the rally well and sound, advancing for the fifth month in a row and always on the back of the deteriorated outlook in the British Pound.
In fact, GBP remains under heavy pressure amidst heightened uncertainty in the domestic political scenario and disappointing performance from UK fundamentals when come to evaluate the macroeconomic view.
In addition, al also posing further downside risks to the Pound, the BoE is expected to drop its cautious tone eventually and shifts to a looser stance, well in line with the rest of its G10 peers and reflecting better the current performance of the economy.
Back to the Brexit front, Chancellor Philip Hammond said that the UK Parliament should block the option of a ‘no deal’ Brexit.
EUR/GBP key levels
The cross is gaining 0.01% at 0.8970 and a break above 0.8992 (monthly high Jun.17) would expose 0.9062 (low Jan.11) and finally 0.9092 (2019 high Jan.3). On the other hand, the next down barrier aligns at 0.8929 (21-day SMA) seconded by 0.8872 (low Jun.20) and then 0.8826 (low Jun.5).
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