- The euro starts the week with a negative tone among the G10 currencies.
- The pound continues with the advance that began on Friday.
EUR / GBP is falling on Monday, extending the move that started late last week. The cross fell to 0.8514, reaching the lowest level since November 4 and remains in the minimum zone, with a dominant bearish tone.
The euro is among the worst performers of the G10 group. The statements of Christine Lagarde, the president of the European Central Bank (ECB) on the low possibility of a rate hike in 2022, kept the common currency under pressure. The official added that she sees inflation below 2% in the medium term. The next meeting of the ECB is on December 16. In the UK, Andrew Bailey, the governor of the Bank of england, exposes before a committee of the Treasury, although no surprises are expected from his statements.
EUR / GBP below 0.8530
The break at 0.8530 enabled further lows and an extension after the rejection from 0.8600, a level it reached two weeks ago. The fall below 0.8530 implies greater forward weakness for the euro, as it loses relevant short-term support, in addition to falling below the 55 and 100-day average. The next target is at 0.8500 and then at 0.8490 where the 20-day average awaits, still strongly bullish.
In case of returning above 0.8545, the euro would regain vigor. A close above 0.8570 would point to a retest at 0.8600, with the bullish bias dominating again.
Technical levels
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