- EUR / GBP rises for the second day and extended the advance following comments from an ECB official.
- The weaker dollar, the Eurozone CPI higher than expected and falling stock markets, gave support to the euro.
EUR / GBP gained momentum in the middle of the European session and only extended the advance to 0.8598, the highest level since July 22. He did so following comments from Robert Holzmann, the governor of Austria’s central bank.. The cross previously held above the 0.8560 region on Tuesday and picked up pace after breaking 0.8580 and leaving behind a two-day range.
The pound remains in a headwind as a result of the recent increase in new cases of COVID-19 in the United Kingdom. On the other hand, the common currency remained supported by the Eurozone consumer inflation figures that were above expectations. According to estimates, the headline CPI accelerated to a 10-year high, with the year-on-year rate at 3.0% in August. This was well above market expectations of a rise to 2.7% from 2.2% the previous month.
Another factor in favor of euro against the pound is being the least optimistic tone in the bags. Wall Street futures point to an open with modest losses.
More recently, the latest EUR / GBP spike was marked after Holzmann, official of the European Central Bank (ECB) would affirm that the central bank is in a position to think about reducing stimulus due to the pandemic and that they should take into account the risks of inflation.
Technical levels to observe
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