EURGBP Moves Higher After Boris Johnson Joins the EU Lockdowns

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EURGBP was 0.25% higher on Monday as U.K. Prime Minister Boris Johnson joined European nations in enforcing a month-long lockdown. The PM announced at Downing Street on Saturday that stricter measures would be applied in England, which included closing pubs, restaurants, gyms, non-essential businesses, and places of worship.

The move comes after the euro struggled last week on the back of similar month-long lockdowns by France and Germany as Europe saw a resurgence of virus cases. Tensions are rising in Italy and Spain as protestors have taken to the streets in recent days to push back against the severe measures.

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The week’s news feed will be dominated by tomorrow’s U.S. election but the EURGBP will see volatility on Thursday as the Bank of England (BoE) releases their latest interest rate and policy guidance. Many had been expecting the U.K. to unleash a new round of economic stimulus and that seems to have been rubber stamped by the new lockdowns, which officially start on the same day.   

Economists are expecting the BOE to increase their quantitative easing by 100 billion pounds this week. That would market the fourth bout of monetary stimulus since the virus started.

EURGBP Technical Outlook

EURGBP closed through key support last week at 0.9020 and this will be the key level for the next few days. The pair could trade higher with a close above which could target 0.9050 and the 50-day average at 0.9075. EURGBP is choppy at the moment and a small position would be advised on any trade. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.

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EURGBP Daily Chart

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