- 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 |
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