EUR / GBP backs down modestly after hitting fresh weekly highs above 0.8700

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  • EUR / GBP jumped to its highest level since late February.
  • The resignation of Bank of England chief economist Haldane weighed on the British pound.
  • The ZEW economic sentiment index for the EU and Germany did not meet market expectations.

The pair EUR/GBP It fell to a daily low of 0.8640 during European business hours on Tuesday, but managed to make an impressive rebound in the second half of the day. After touching its highest level since Feb 22 at 0.8713, the pair turned down and was last seen gaining 0.25% on the day at 0.8686.

Hours earlier, monthly sentiment data showed that the ZEW economic sentiment index in April fell to 70.7 and 66.3 in Germany and the EU, respectively. Both readings disappointed analysts’ estimate and weighed on the shared currency.

However, the British pound faced heavy selling pressure after the Bank of England (BoE) announced the resignation of chief economist Andy Haldane. The Bank of England also noted that Haldane will also step down from the Monetary Policy Committee after the June meeting.

Reflecting the negative impact of this headline on the GBP, the GBP / USD pair lost around 40 pips in a matter of minutes and briefly fell below 1.3700.

On Wednesday, industrial production will be included in the European economic agenda. No significant UK macroeconomic data will be released.

Technical levels

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