- EUR/GBP bounces from daily minimums as investors prefer the euro over the pound.
- USA proposes 10% tariffs at the EU level, excluding aircraft and spirits.
- The German commercial surplus exceeds forecasts, adding winds favorable to the euro.
The euro recovers land against the sterling pound, rising more than 0.22% against it, while the US dollar presses both currencies. The commercial war has returned, after US President Donald Trump revealed tariffs to 14 countries, which has generated fears that these measures could be extended to the largest commercial partners. The EUR/GBP quotes 0.8626 after bouncing from a minimum daily of 0.8600.
EUR/GBP rises above 0.8625 as the fears of commercial war and German data support shared currency resurface
The mood on the market remains pessimistic, although it favors the shared currency on its counterpart from the United Kingdom. Political reports revealed that the US offered a 10% tariff to the European Union (EU) over all goods with “some exceptions for sensitive sectors such as aircraft and spirits.” Negotiations seem to remain fluid, although the approval of the framework ultimately falls in Trump.
The data revealed that the German trade balance registered a surplus of 18.4 billion euros, exceeding the expectations of 15.5 billion euros.
In the United Kingdom, the news flow is light, although operators expect the publication of the figures of the Gross Domestic Product (GDP) on Friday.
EUR/GBP price forecast: technical perspective
The price action in the EUR/GBP is maintained lateral, although slightly inclined upwards, with the 50s, 100 and 200 days remaining below the current exchange rate. From the point of view of the momentum, more profits are evidenced with the relative force index (RSI) keeping up and in ascending tendency.
The first area of ​​interest of the EUR/GBP would be the maximum of July 2 at 0.8670. A rupture of this level will exhibit the figure of 0.8700. On the contrary, if the cross torque falls below 0.8600, the first support would be the 20 -day SMA at 0.8561. In case of more weakness, the minimum of June 27 emerges as the following line of defense for the bullies in 0.8508.
Euro price this week
The lower table shows the percentage of euro change (EUR) compared to the main currencies this week. Euro was the strongest currency in front of the Japanese yen.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.79% | 0.82% | 1.89% | 0.66% | 0.70% | 1.32% | 0.55% | |
| EUR | -0.79% | 0.05% | 0.89% | -0.15% | -0.02% | 0.53% | -0.24% | |
| GBP | -0.82% | -0.05% | 0.82% | -0.17% | -0.06% | 0.49% | -0.42% | |
| JPY | -1.89% | -0.89% | -0.82% | -1.00% | -0.97% | -0.36% | -1.28% | |
| CAD | -0.66% | 0.15% | 0.17% | 1.00% | 0.06% | 0.67% | -0.25% | |
| Aud | -0.70% | 0.02% | 0.06% | 0.97% | -0.06% | 0.65% | -0.34% | |
| NZD | -1.32% | -0.53% | -0.49% | 0.36% | -0.67% | -0.65% | -0.90% | |
| CHF | -0.55% | 0.24% | 0.42% | 1.28% | 0.25% | 0.34% | 0.90% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the euro of the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the EUR (base)/USD (quotation).
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.
