- EUR/GBP moves higher and clinches tops above 0.90.
- UK GDP figures surprised to the upside.
- UK Industrial Production contracted 0.6% MoM in August.
The rebound in the British Pound is now prompting EUR/GBP to recede from earlier tops beyond the key 0.90 the figure.
EUR/GBP eases from 4-week highs
The increasing selling pressure around the Greenback is fuelling the upbeat momentum in both the Sterling and the shared currency today, motivating the European cross to gyrate around the 0.90 neighbourhood, or new multi-week highs.
On the Brexit front, everything continues to orbit around the Irish backstop amidst the re-emergence of the ‘no deal’ scenario as a potential outcome of the negotiations and rising speculations on early elections, all ahead of the key EU Summit on October 17-18.
In the docket, mixed readings sparked mixed results around the Pound after GDP figures showed the economy contracted at a monthly 0.1% in August and expanded 0.3% on the three-months ended in August and 1.1% on a yearly basis. On the poor side of the docket, Industrial Production contracted 0.6% MoM during August and Manufacturing Production dropped 0.7% inter-month, confirming the deterioration in the sector remains unabated. Further data saw the trade deficit widening a tad to £9.81 billion during the same period.
EUR/GBP key levels
The cross is gaining 0.18% at 0.9003 and faces the initial hurdle at 0.9010 (monthly high Oct.10) seconded by 0.9021 (55-day SMA) and finally 0.9127 (23.6% Fibo of the May-August rally). On the flip side, a drop below 0.8885 (21-day SMA) would expose 0.8829 (200-day SMA) and then 0.8785 (monthly low Sep.20).