EUR/GBP bounces off lows, near 0.8330 ahead of PMIs

The renewed selling pressure around the Sterling has allowed EUR/GBP to challenge to upper end of the range around 0.8330 on Friday.

EUR/GBP up post-Carney

The European cross met increasing buying pressure after Governor M.Carney left the door open for further easing over the summer, pointing to rate cuts, extra QE or both. Carney’s comments sent GBP sharply lower on Thursday although it has managed to regain some ground since then.

After posting fresh 2016 highs just above 0.8380, the cross deflated to overnight lows near 0.8300 the figure, where it seems to have found decent support.

Data wise, final June’s manufacturing PMIs are due in Euroland and the UK.

EUR/GBP key levels

The cross is now losing 0.07% at 0.8328 and a breakdown of 0.8163 (low Jun.27) would open the door to 0.7996 (high Jun.16) and then 0.7959 (20-day sma). On the flip side, the next up barrier lines up at 0.8382 (2016 high Jun.30) ahead of 0.8401 (monthly high Mar.18 2014) and then 0.8467 (monthly high Dec.17 2013).