EURGBP Looks to Test Recent Highs – U.K. PMI May Decide
The EURGBP pair was still trading above 0.9200 and looking to test the recent highs at 0.9290. Later in the morning, we get Manufacturing and services PMI numbers from the U.K. and this may decide whether the Euro can advance further.
U.K. Markit PMI Data
The U.K. PMI figure from Markit will show preliminary manufacturing and services data for the country. The services figure is more important because the U.K. economy is more predominantly driven by the services industry and this is important with the recent turmoil in the sector. A number above 50 signifies expansionan and both are expected to dip, but still highlight growth. A higher number would boost the pound, whilst a number closer to 50 may see a rally in the Euro as it could reflect a lower GDP expectation.
The British economy has just seen more restrictions added due to rising virus cases and Prime Minister Boris Johnson has been asked to clarify his intention to use the military to enforce his virus rules- a measure which was passed without Parliamentary discussion.
In Brexit news, the PM’s controversial Internal Markets Bill passed a key hurdle on Tuesday and this will see the bill debated later, with politicians likely to discuss it just ahead of the mid-October deadline for an agreeement. This will keep pressure on the pound over the next weeks.
EURGBP Technical Outlook
The EURGBP pair is still above key support and heading for the 0.9290 highs from 11th September. This would be an important level and could cap gains in the Euro. The 0.91500 support level would open the path to a potential retest of the range levels with the 50-day moving average being at 0.9050. The Investing Cube team is currently available to assist all levels of traders with a Forex Trading Course or one-to-one coaching.