- Liz Truss replaces Boris Johnson and is the new Prime Minister of the United Kingdom.
- The ECB decides on monetary policy on Thursday.
- EUR/GBP pulls back from monthly highs to weekly lows.
EUR/GBP is falling for the second day in a row on UK government changeover day with the departure of Boris Johnson. The cross had reached last week up to 0.8675 and at this time, it is trading at 0.8575.
The cross failed to consolidate above 0.8650 and lost steam. The pullback has accelerated and recently hit 0.8565, a one-week low. The price remains close to the bottom with the next support at 0.8550. To the upside, now 0.85690 and 0.8620 (daily high) are the resistances to watch.
Between Truss and the ECB
Liz Truss She is already the new Prime Minister of the United Kingdom. The focus at this time is on who will make up the cabinet and on speculation about energy-related announcements. There is talk of freezing bills to families for 18 months.
The pound’s performance is strong on Tuesday, reversing days of widespread declines. This is reflected in EUR/GBP as well, which is down from monthly highs.
The setback occurs despite the fact that an aggressive rise is expected by the European Central Bank Thursday when the Governing Board meets. Part of this is already discounted in the price, so it is no longer an upward drag factor. Now it remains to be seen what the central bank does and the message to the future.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
