EURGBP was higher after the UK and the European Union decided to continue trade talks beyond Sunday’s deadline. There was a potential of a No Deal Brexit occurring this weekend, but many traders have seen these deadlines come and go before and were not expecting such an outcome.
The EUR v GBP rate was lower by almost 1% on the extension, but if an agreement isn’t found by year-end, British firms would revert to trading under the World Trade Organization with imports and exports to the EU subject to tariffs. Such a move would likely also see the Bank of England cutting interest rates below zero for the first time ever.
Tomorrow will see economic data for the pound with the release of the latest employment data. Analysts are expecting a reading of -250k jobs after last month’s -164k number. Unemployment was at 4% in the UK in February but has moved higher to 4.8% as many sectors come under the strain of the lockdown damage. Tomorrow’s increase in unemployment would see the rate rise again to 5.1%.
EURGBP Technical Outlook
EURGBP was testing the key 0.9175 resistance again on Friday but has tumbled to 0.9065 in early trading on Monday. The next strong support levels for the pair are near 0.9000 and 0.8870. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
Don’t miss a beat! Follow us on Telegram and Twitter.
EURGBP Daily Chart
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Kevin on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.