- EUR/GBP met further selling pressure on Tuesday.
- GBP-buying dragged the cross briefly to sub-0.8300 levels.
- UK labour market report came in mixed in January.
The renewed upside momentum in the sterling is forcing EUR/GBP to trade in the lower bound of the yearly range in the 0.8300 neighbourhood.
EUR/GBP weaker post-data
The European cross is challenging the area of YTD lows in the 0.8300/0.8290 band, area last traded in December 2019, always on the back of the fresh buying interest in the quid and the unremitting bearishness hurting the single curremcy.
The softness in the euro accelerated once again on Tuesday after the Economic Sentiment in both Germany and the Euroland deteriorated below consensus in February, according to the latest ZEW survey.
Across the Channel, the UK’s Claimant Count Change rose by 5.5K during last month from December’s 2.6K and forecasts for a 22.6K gain, while the jobless rate stayed unchanged at 3.8%. On the not-so-bright side, the Average Earnings +Bonus rose less than expected at an annualized 2.9% in December.
Latest news regarding post-Brexit upcoming trade talks cited UK Brexit negotiator D.Frost saying the country “must have the ability to set laws that suit us” at his speech in Brussels. It is worth recalling that trade negotiations between both parties are scheduled to start next month.
EUR/GBP key levels
The cross is losing 0.32% at 0.8302 and 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). On the other hand, the next resistance of note appears at 0.8423 (21-day SMA) seconded by 0.8467 (55-day SMA) and then 0.8537 (weekly/monthly high Feb.4).
Share
