EUR / GBP rises to week highs near 0.8480

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  • EUR / GBP picked up pace on Monday following Friday’s correction and rose to a two-week high.
  • The pound is weak throughout the market.
  • UK data beat expectations at Bank of England start of week.

The EUR / GBP maintained its demanding tone during the European session and climbed to 0.8478, the highest in two weeks. The cross remains above 0.8470, with a bullish tone and resting on the 20-day simple moving average.

After the fall of Friday, EUR / GBP regained traction and is now looking to extend its recovery from this year’s lows around 0.8400 touched last week. The relative underperformance of the British pound comes amid the ongoing dispute over fishing rights between the UK and France.

In recent events, France seized a British ship last week and the UK threatened retaliatory action. On Sunday, UK Prime Minister Boris Johnson and French President Emmanuel Macron met to ease tension. It also follows the issue by the Northern Ireland Protocol.

The focus is also on the Bank of england expected to announce an interest rate hike on Thursday. This event is expected to keep the pound with some significant volatility throughout the week.

Looking at economic data, the UK manufacturing PMI stood at 57.8 for September compared to 57.7 in the preliminary estimate. Another report showed an unexpected drop in German retail sales of 0.9%, against the 1.8% forecast.

Technical levels

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