- EUR / GBP is trading bearish today, but has remained supported above the 0.8600 level.
- The news that the EU is taking the UK to court over Northern Ireland hasn’t changed the sterling dial much.
The EUR/GBP It has traded on a negative bias for most of Thursday’s session, breaking down from the previous weekly range of 0.8620-0.8670. However, the pair bounced from the support at the 0.8600 level and is now trading around the 0.8620 level again. On the day, the pair appears poised to end with losses of around 0.2% or around 20 pips.
Performance of the day
Fundamental catalysts have been few and far between on Thursday. The news that the EU is preparing to take the UK to court over the latter’s decision to unilaterally extend customs exemptions to companies trading between Britain and Northern Ireland, which the EU claims is a violation of the Northern Ireland protocol. The EU has put the ratification of its trade agreement with the UK on hold in the EU parliament.
Meanwhile, there has been positive trade news between the UK and the US; after the UK suspended tariffs on some US products on January 1, 2021 (tariffs it had been forced to implement as a member of the EU that had been involved in the US / EU subsidy dispute and Airbus / Boeing), US some UK products, including malt whiskeys, cheese, cashmere and machinery. UK Commerce Secretary Lizz Truss said the US move “paves the way for improving trade relations with the US across the board.”
The above news appears to help the British pound on Thursday, while market commentators also argue that the British pound continues to gain support from Wednesday’s budget announcement (which beat expectations, judging by the bond market reaction, at least ). such as the success of the ongoing vaccine launch in the country, which appears to be helping a much faster-than-expected drop in the seven-day moving average of the daily number of deaths from Covid-19 (now less than 200 per day , compared to previous SAGE forecasts that it would take until the end of the month to go down).
Technical levels
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