EURGBP Clings to the Uptrend – Euro PMI and Employment Data Ahead

The EURGBP was trying to recover from yesterday’s losses as the pair struggles to hold onto the higher levels. The pound rallied yesterday to see a close of 0.9070 in the cross. The Euro was higher today with the price at the 0.9120 level.

The euro is under pressure with a surge in virus cases in the union. Germany reported the highest number of infections since April as France and Spain also saw over 10,000 cases each on Wednesday. Europe’s largest economy has recommended the restriction of home gatherings to 25 people and will also limit public meetings.

Today will see Markit Manufacturing PMIs for September in both Europe and the U.K. so this could be a spark for further movement in the EURGBP. The U.K. number came in slightly lower at 54.1 versus 54.3 expected, but this is still a strong expansion. The Euro and German number will have to match this strength, while we also get the European unemployment rate for August with a slight rise to 8.1% expected.   

The pound got a boost yesterday after upbeat comments from the Bank of England’s Andy Haldane on the economy. The MPC member also poured cold water on the idea of negative interest rates in the near future. Haldane said that none of the conditions for sub-zero rates were evident for now. 

EURGBP Technical Outlook

EURGBP fell yesterday to create a bearish close under the recent support. The pair hasn’t breached the 50-day moving average so there is still hope for the upside but there needs to be a close above 0.9140 to spur further gains. The downside targets 0.8870. The Investing Cube team is currently available to assist all levels of traders with a Forex Trading Course or one-to-one coaching.     

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EURGBP Daily Chart

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