Economy Forex News

EUR/GBP falls to more than two-month lows near 0.8450

Sponsored
  • EUR/GBP extends its recent downward trajectory and falls to more than two-month lows.
  • Optimistic signals from the BoE and easing fears of a new Brexit-related dispute benefit sterling.
  • A weaker USD benefits the common currency and could offer some support to EUR/GBP.

EUR/GBP has extended its steady intraday decline and has fallen to more than two-month lows around the 0.8450 region during the first half of Thursday’s European session.

EUR/GBP

MetaNews.

In spite of the modest intraday rally, the pair has struggled to capitalize on the move. Further selling below the psychological level of 0.8500 suggests that the decline may yet continue. Sterling’s relative performance coincides with positive developments in the Brexit deal for Northern Ireland.

EU negotiators on Wednesday presented a plan to reduce customs checks. Red tape on British goods destined for Northern Ireland to prevent a new dispute post-Brexit. In response, the UK said it would examine the proposals seriously and constructively and urged both sides to engage in intensive negotiations as soon as possible.

Apart from this, upbeat signals from Bank of England (BoE) officials, including Governor Andrew Bailey, have additionally acted as a tailwind for sterling. As such, the money market now seems to have fully priced in a 25bps rate hike from the BoE in December, which is seen as another factor putting pressure on the EUR/GBP cross.

On the other hand, the common currency has benefited from the US dollar’s current fall back from 13-year highs. While this has not impressed the pair’s bulls, it might limit any further losses for the EUR/GBP cross. Nevertheless, the fundamental backdrop favors the bearish and supports the prospects for additional losses.

EUR/GBP technical levels

OVERVIEW
Today’s Last Price 0.8463
Daily Rate -0.0022
Daily Rate % -0.26
Today’s Daily Open 0.8485

TRENDS
20 Daily SMA 0.8545
50 Daily SMA 0.8543
100 Daily SMA 0.8558
200 Daily SMA 0.8625

Avatar

Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
Follow Me:

Related Posts