EUR / GBP falls to 0.8570, three-week low

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  • The pound extends the slide against the euro on Friday.
  • EUR / GBP on its way to the lowest daily close in two months.

The EUR / GBP is falling for the third day in a row and has just dropped to 0.8570, the lowest level since May 12. The euro is on track to have its lowest daily close since early March, which could leave the way open for further declines.

The pound continues to trend in favor against the euro. Friday is reflected in the fact that the EUR / USD fails to recover above 1.2100 and is in negative territory, while the GBP / USD rises and operates at 1.4120.

Economic data showed a rise in the Markit PMI for UK construction from 61.6 to 64.2, beating the market consensus of 62.3. While in the Eurozone, retail sales fell 3.1% in April, a decrease greater than the 1.2% of the market consensus. Now the focus is on the US employment report that may generate movement in the market, even impacting the EUR / GBP.

From a technical point of view, the picture continues to favor the pound. A close clearly below 0.8570 would imply the break of the May floor, leaving the way clear for 0.8545 / 50 where the next support is. If it manages to stay above and recover 0.8600, the euro will maintain the downward pressure, although just above 0.8640 a strength could be expected ahead, since it would overcome a bearish line.

Technical levels

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