EURGBP Back At 0.9200 Level as U.K. Heads Into Second Lockdown
EURGBP was higher by 0.42% as Britain is set for another lockdown. Concerns over rising cases in the country has led to calls for a two-week lockdown with Prime Minister Johnson set to disclose details in a t.v. address this evening.
Among the restrictions set to be announced will be a closing of all hospitality venues by 10pm from Thursday and a return to working from home. It was only a few weeks ago that Johnson was encouraging workers to go back into the office, but rising cases led to advice from medical officers to bring back restrictions. The country is seeking to avoid another economically disastrous full national lockdown
It is not only in Britain where restrictions are increasing. Norway banned gatherings of 10 people, while Madrid and the Czech Republic took moves to control their own spreads. France also saw a record number of cases over the weekend.
For EURGBP the emphasis still rests on Brexit with former Prime Minister joining critics of Boris Johnson’s Internal Market Bill, which she said would undermine the country and could see Ireland united. May called the current PM’s plans, “reckless” and “irresponsible”. The U.K. is set to break from the EU on December 31st but a deal needs to be finalized and Sterling has been unde pressure since a threat to walk away if no deal is made by the October deadline.
EURGBP Technical Outlook
The EURGBP continues to bounce from the 0.1900 level and is above the June 29th high above 0.91500. This level will provide support for another push to the 0.9250 level. A close below 0.91500 could see the pair trade back in the recent range. The Investing Cube team is currently available to assist all levels of traders with a Forex Trading Course or one-to-one coaching.