EUR/GBP upside met tough resistance

5 June, 2019

EUR/GBP comes down after testing the 0.8900 handle. UK PM Theresa May will step down on Friday. Brexit uncertainty remains unabated.

After testing fresh 5-month tops in the 0.8900 neighbourhood on Tuesday, EUR/GBP sparked a correction lower to the current 0.8870/65 band.

EUR/GB focused on Brexit, government


Despite Tuesday’s negative price action, the European cross keeps the 5-week positive streak unabated so far this week, always bolstered by the renewed and strong pick up in the buying interest around the shared currency.

On the GBP-side, the ongoing rebound in the Sterling is more linked to USD-weakness than anything else, while the domestic front remains dominated by rising uncertainty over the potential successor of Theresa May at Downing St, stalled Brexit negotiations and rising bets on a ‘no deal’ scenario.

In the data space, German and EMU final services PMIs surprised to the upside, while Producer Prices came in below expectations in May. In the UK docker, the always-relevant services PMI improved a tad to 51.0 during last month, surpassing estimates.

EUR/GBP key levels


The cross is gaining 0.12% at 0.8871 and a break above 0.8902 (monthly high Jun.4) would expose 0.9062 (low Jan.11) and finally 0.9092 (2019 high Jan.3). On the flip side, the next down barrier aligns at 0.8782 (200-day SMA) seconded by 0.8724 (low May 21) and then 0.8665 (55-day SMA).


Source link  
Gold rallies to session tops around $1285

Fears of a further escalation in the US-China trade tensions underpin safe-haven demand. The ongoing slump in the US bond yields remained supportive...

Euro drops to lows around 1.1220

The pair drops further and tests 1.1230/25, fresh lows. EMU Consumer Confidence improved a tad to -7.2 in March. German advanced CPI in focus...

Gold surrenders weekly gains

Bulls fail to capitalize on the recent recovery move from over one-month lows. A goodish recovery in European equities dampens safe-haven demand. A modest USD


US Dollar Index challenges 96.00

The index comes under further selling pressure and tests the 96.00 handle. Yields of the US 10-year note ease from tops beyond 3.17%. US Non-farm...

Gold bounces off lows

Renewed trade-war fears push USD higher and prompt some fresh selling. Reviving safe-haven demand lends some support and helps limit downside. Fed...

GBP futures downside looks limited

In light of advanced data for GBP futures markets from CME Group, investors scaled back their open interest positions by almost 1.8K contracts on Thursday from...


Gold clocks 10-day highs near $1263

Technical correction extends above $ 1260 amid broad-based USD weakness. Lingering US-Sino trade tensions support, as the focus shifts to the US CPI...

Dollar holds below mid-94.00s

Lingering trade war fears keep the USD bulls on the defensive. Thin liquidity conditions also hold traders from placing aggressive bets. This week's important...

Dollar clings to daily gains above 95.00

The greenback, in terms of the US Dollar Index (DXY), is sticking to the positive territory so far today and so far manages well to keep the trade above 95.00...

  


Share it on:   or