- Euro loses strength against the pound, after rising on Tuesday.
- EUR / GBP remains supported at the 20-day moving average.
The EUR / GBP is falling on Wednesday after Tuesday’s bounce. The price found resistance at the 0.8640 area and fell back to 0.8611. It is trading at 0.8620 / 25, in negative territory for the day.
The pound remains close to the highs of the previous week, although unable to break and return below 0.8600. The 20-day moving average that is passing by 0.8600 is a key level, which if it gave way based on a daily close, would point to more weakness ahead.
Vaccines, recovery funds and inflation
In Europe, there are two developments that may have a positive impact on economic expectations. One is the resumption of use of the Johnson & Johnson vaccine. The other is that he sees the possibility of implementing the European recovery fund advancing after a German court of justice authorized the ratification of the procedure. The way is still clear in other countries.
With regard to data, it was known that inflation in the United Kingdom stood at 0.7% (annual) in March, below the expected 0.4%. The market is preparing for the meeting of the European Central Bank (ECB) on Thursday. On Friday it will be the turn of the preliminary reading of the Eurozone PMI.
Technical levels
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