EURUSD
EURGBP was 0.20% higher on Monday after the pair found support on Friday around the 0.8940 level. The Pound has seen strength since the late-July highs at 0.9150, but the latest bounce higher highlights a trading range and the Euro will now try to advance to the recent highs once more.
The European currency has shrugged off a fall in the IHS purchasing manager’s index last week which suggests the economy is closer to contracting than expected and growth expectations may be more sluggish than initially expected.
Data drivers for the EUR/GBP pair are all coming from Germany this week with final GDP numbers tomorrow alongside the IFO business climate survey. Friday will see consumer confidence numbers from the Eurozone’s largest economy.
Other headline risk for the pair will focus on the Coronavirus outbreak, where Germany is seeing a further surge in cases. Over the last 24 hours, the country reported 2,034 new cases, which is the highest spike since April. The spike is occuring due to an increase in testing and may not lead to any large-scale lockdown measures.
