Categories: Markets

EUR / GBP falls to six-week lows at 0.8920

He EUR/GBP it has lost 75 pips from the intraday ceiling of the Asian opening, 0.8995, to stop in the early hours of the American session in the zone 0.8920, new low of six and a half weeks.

The pair has recovered a few pips from the aforementioned low but is still heavily downward pressure, currently trading around 0.8930, losing 0.61% on the day.

The pound has been strengthened by two factors, statements by the BoE Governor and optimism about the rate of vaccination that has started in the United Kingdom. Statements this morning by the Governor of the Bank of England, Andrew Bailey, calling negative interest rates “a controversial issue” have led markets to think that the BoE will not cut its rates in future meetings, which has boosted the GBP. In addition, the race undertaken by the British government to vaccinate the maximum population in the shortest time possible, has also favored the pound sterling in its battle against the euro. He vaccination rate has increased to 200,000 daily doses, and is expected to increase with the opening of 50 vaccination centers throughout the country. The goal is to have 13 million Britons vaccinated by mid-February.

EUR / GBP Niveles

The first support appears at 0.8915, the low of November 27, followed by 0.8900 and the key level 0.8861, the bottom of November 11 and the lowest level since May 2020.

On the upside, the first resistance to overcome is at 0.9000. If this level is exceeded, the target will be 0.9037, the January 11 ceiling. Higher expect 0.9085, high of January 6.