EUR/GBP Looks for Direction Near 0.7900

EUR/GBP Looks for Direction Near 0.7900

10 May 2016, 08:05
Roberto Jacobs

EUR/GBP Looks for Direction Near 0.7900

EUR/GBP is now extending its consolidative theme around the 0.7900 handle amidst a softer tone in both the sterling and the single currency.

EUR/GBP attention to risk trends, data

Absent relevant releases or significant events in the euro area or the UK, the cross is once again looking for catalysts around the 0.7900 area, while the persistent buying interest in the greenback keeps the pressure on the risk-associated space.

On the data front, the German economy will take centre stage during the European morning, as Trade Balance figures, Current Account and Industrial Production results are all due later. Across the Channel, UK’s trade deficit is expected at £11.3 billion in March.

EUR/GBP key levels

The cross is now up 0.01% at 0.7901 facing the next hurdle at 0.7947 (high May 4) ahead of 0.7995 (high Apr.18) and then 0.8119 (2016 high Apr.7). On the flip side, a breach of 0.7869 (20-day sma) would expose 0.7731 (low Apr.26) and finally 0.7489 (200-day sma).


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