- EUR/GBP carries weakness to break short-term resistance-line as the latest Brexit headlines flash mixed signals.
- The UK PM Johnson is ready to reveal his Brexit secrets to the EU while talks of having DUP support optimists.
- The EU, Irish officials are unimpressed by leaked version while staying ready to turn down the offer.
With the Brexit headlines on a spike, EUR/GBP carries its soft landing below near-term key resistance-line while trading around 0.8895 during early Asian morning on Wednesday.
While Reuters shared the extracts of the UK PM’s Conservative Speech and triggered speculations of no-deal Brexit with the Tory leaders’ firm stand on Brexit date as October 31, the UK Telegraph released a leak of the Prime Minister Boris Johnson’s likely proposal indicating multiple border checks and a limited period backstop.
Contrary to the sentiment, The Guardian recently released a news story signaling that the United Kingdom’s (UK) PM has already secured support from the Democratic Unionist Party for his support. However, some of the EU and the Irish diplomats are sure of turning the offer down if meeting the leaked standards, the news report says.
Furthermore, the UK Times has a different story indicating that the House leader Jacob Rees-Mogg stays ready to ask for another Parliament suspension during this weekend, which in turn can help the Tories gain enough support to progress in their Brexit desires.
Adding to the volatility is the UK’s BRC Shop Price Index (YoY) for August that recently dropped below -0.4% to -0.6%.
On the other hand, the Euro (EUR) bears the burden of downbeat activity numbers but witnessed a bit of pullback amid the overall pessimism surrounding the US Dollar (USD) weakness.
Looking forward, investors will keep an eye over the Brexit headlines amid a lack of major data on the economic calendar.
Technical Analysis
A sustained break of immediate resistance-line stretched since August 12, at 0.8915 now, could trigger the pair’s run-up to 0.9000 round-figure prior to confronting a 50-day simple moving average (SMA) level of 0.9035. However, a downside break of 0.8850/45 could recall September low nearing 0.8785 on the chart.
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