EUR / GBP falls towards 0.8400 and GBP / USD points to October highs

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  • The UK currency among the best performing on Tuesday.
  • GBP / USD climbs to weekly highs, EUR / GBP to low in a year and a half.

The pound is rising on all fronts on Tuesday, with the advance against the euro standing out in particular. The EUR/GBP It is trading just above 0.8400, the lowest level since Q1 2020.

The GBP/USD it rises for the second day in a row and is approaching the October high which is in the 1.3835 area. A firm break in this level could trigger further advances, and an approach to 1.4000. For its part, the EUR / GBP reached 0.8403, and if it lost 0.8400, further falls would be expected.

Against the Swiss franc, the pound rises strongly for the second day in a row, going from low in weeks to highs in day. The GBP/CHF it is back above 1.2700. The GBP/AUD it seems to have bottomed out and is recovering from 1.8301 (the lowest since July), reaching levels above 1.8400.

At the moment there is no particular factor behind the rally of the pound. What guides the movement seems to be a combination of factors arising from the expectation of an adjustment by the Bank of England following the latest comments from central bank officials. This contrasts expectations for the European Central Bank, leading to a decline in the EUR / GBP.

The significant decline in the EUR / GBP has in itself given some general strength to the pound in the market. In the case of GBP / USD, the dollar weakness at the market on Tuesday and persistent rise in equity markets. This overshadows the problems of supplies and derivatives due to Brexit and the general crisis.

Technical levels

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