- Prime Minister Johnson will step down as leader of the Conservative Party.
- The pound advanced in the market due to an easing in the climate of political tension.
- EUR/GBP confirms short-term trend line break.
EUR/GBP broke below 0.8530 and fell to 0.8491, hitting the lowest intraday level since June 10 after news broke that Johnson will step down as leader of the Conservative Party and hence will soon cease to be Prime Minister.
Johnson out, pound up
The news that the UK Prime Minister Boris Johnson pLanea resigning after three years in office over the latest scandals, gave the pound a boost. Johnson would remain in office until October, when the new leader of the Conservative Party is elected.
The pound It is also seen in part favored by the rise in the markets due to the expectation of a stimulus in China. For its part, the euro continues to face headwinds due to doubts about the effectiveness of the European Central Bank’s (ECB) anti-fragmentation plan.
EUR/GBP trades with a bearish bias in the short term, after confirming the break of an uptrend line and 0.8530. A return above this last level could alleviate the downward pressure. Next strong support is seen at 0.8490 and then 0.8455.
EUR/GBP 4 hour chart
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.
