untitled design

EUR / GBP eyeing a test of the multi-month lows at 0.8830

  • EUR / GBP has fallen from the Asian session highs above 0.8900 to below 0.8850 in recent trading.
  • No specific fundamental catalyst is clearly behind Tuesday’s decline in EUR / GBP.

He EUR/GBP It has been pushing lower in recent trading, reversing the fleeting gains from the Asia Pacific session that saw the pair briefly move above 0.8900 to drop to 0.8850. Not far off are the multi-month lows at 0.8830 set last week, an area that bears will have their eyes on.

Driving the day

No specific fundamental catalyst is clearly behind the EUR / GBP slide on Tuesday. Some have cited the influence of month-end flows that may go in favor of the British pound (the British pound has also seen gains against the dollar in recent trading). Others point to ongoing distress within the euro zone regarding news of recent vaccine delivery delays from AstraZeneca and Pfizer, putting the bloc’s vaccination efforts even further behind those in the UK and the EU. The EU has been pressuring the two pharmaceutical giants regarding these production delays for the past few days and is pressuring them to divert deliveries from elsewhere to the EU.

Some analysts also point out that the current Italian political risk may affect the confidence of the euro. Italian Prime Minister Giuseppe Conte resigned “tactically” on Tuesday and hopes to receive a new mandate to form a new government from Italian President Sergio Mattarella. The fear is that Conte could fail in his attempt to form a new government, which could trigger another general election, could hand profits to Italian anti-EU parties like Matteo Salvini’s La Liga.

Looking to the future

Not much data to worry about for the rest of the week outside of the UK. Instead, the focus will be on the rate at which the country continues to vaccinate its population and the spread of the virus. Along the English Channel, EUR traders will be looking at preliminary fourth quarter GDP figures for Germany, Spain and France, as well as preliminary December CPI figures for Germany and Spain. Of course, vaccination and EU blockades and travel restrictions will also remain of crucial importance.

Technical levels

EUR/GBP

Panorama
Today’s Last Price 0.885
Today’s Daily Change -0.0032
Today’s Daily Change% -0.36
Today’s Daily Opening 0.8882
Trends
SMA of 20 Daily 0.8952
SMA of 50 Daily 0.8989
SMA of 100 Daily 0.9033
200 SMA Daily 0.8995
Levels
Daily Preview Maximum 0.8899
Daily Previous Minimum 0.8869
Weekly Preview Maximum 0.8925
Weekly Prior Minimum 0.883
Monthly Previous Maximum 0.923
Minimum Previous Monthly 0.8929
Daily Fibonacci 38.2% 0.888
Fibonacci Daily 61.8% 0.8887
Daily Pivot Point S1 0.8868
Daily Pivot Point S2 0.8853
Daily Pivot Point S3 0.8837
Daily Pivot Point R1 0.8898
Daily Pivot Point R2 0.8914
Daily Pivot Point R3 0.8928

.

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular