- EUR/GBP extends winning streak amid sterling weakness.
- Rising borrowing costs for the UK government have hit its economic outlook.
- The Euro gains despite expectations that the ECB will cut interest rates by 100 basis points by mid-summer.
The EUR/GBP pair extends its winning streak for the fifth trading day on Tuesday. The cross stands out as the British Pound (GBP) performs weakly across the board as the United Kingdom’s (UK) economic outlook has faltered due to rising yields on British government securities.
30-year UK bond yields have risen to 5.47%, the highest level seen in more than 26 years. The rise in the cost of UK government borrowing is partly due to uncertainty over US President-elect Donald Trump’s incoming trade policies and the nation’s heavy reliance on foreign funding.
Investors hope higher borrowing costs could force Chancellor of the Exchequer Rachel Reeves to go against her fiscal rules as she promised in the autumn budget to rely on foreign loans to finance investment and not in daily spending.
Meanwhile, the Euro (EUR) performs strongly against its major peers on Tuesday, even though the European Central Bank (ECB) is expected to continue cutting interest rates this year. The ECB cut its deposit facility rate by 100 basis points (bps) to 3% in 2024 and is expected to cut further by a similar size by mid-summer.
Euro PRICE Today
The table below shows the percentage change of the Euro (EUR) against the main currencies today. The Euro was the strongest currency against the Pound sterling.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.26% | 0.29% | 0.16% | -0.02% | -0.10% | -0.36% | -0.11% | |
| EUR | 0.26% | 0.56% | 0.39% | 0.25% | 0.16% | -0.10% | 0.15% | |
| GBP | -0.29% | -0.56% | -0.13% | -0.31% | -0.37% | -0.66% | -0.40% | |
| JPY | -0.16% | -0.39% | 0.13% | -0.17% | -0.24% | -0.52% | -0.26% | |
| CAD | 0.02% | -0.25% | 0.31% | 0.17% | -0.08% | -0.34% | -0.08% | |
| AUD | 0.10% | -0.16% | 0.37% | 0.24% | 0.08% | -0.25% | -0.01% | |
| NZD | 0.36% | 0.10% | 0.66% | 0.52% | 0.34% | 0.25% | 0.25% | |
| CHF | 0.11% | -0.15% | 0.40% | 0.26% | 0.08% | 0.01% | -0.25% |
The heat map shows percentage changes for major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change shown in the box will represent EUR (base)/USD (quote).
EUR/GBP extends its weekly rally near 0.8430. The cross strengthened after breaking above the December 27 high of 0.8329, which has now become support. A recent bullish crossover, suggested by the 20-day and 50-day EMAs near 0.8330, indicates a strong bullish trend.
The 14-day Relative Strength Index (RSI) rises sharply near 70.00, suggesting strong bullish momentum.
The cross could see a fresh bullish move near the August 26 high of 0.8475 and the psychological resistance of 0.8500 after breaking above the October high of 0.8448.
Alternatively, a move lower below the January 14 low of 0.8384 would weaken the bullish move and drag the asset towards the October 24 high of 0.8350, followed by the December 27 high of 0.8329.
EUR/GBP daily chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
