EURGBP
EURGBP moved higher on Wednesday after France threatened to veto any Brexit agreement if it didn’t suit their terms. The move is another worry for the Brexit process as it is a reminder that any deal would have to be approved by all 27 EU countries and both sets of politicians. France is concerned that the negotiators will give away too much to meet the deadline.
Stronger German Retail Sales were also a boost for the Euro after the numbers came in at 8.2% versus analyst’s expectations for 5.9%. Today will see final November PMI data for the UK and British economies.
The big news yesterday was the approval of the Pfizer/BioNTech vaccine for coronavirus. The immunisation program is set to begin next week and it could start a race between countries to get their respective countries reopened. This timeline will also be a driver for the currency market in the months ahead as other countries may take longer to approve the vaccines.
The EURGBP soared above the 50-day moving average on Wednesday and this will now be support for a move higher. The key levels for the pair are at 0.9100-9200. Support is still at 0.8870 and a Brexit deal could see that level breached. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
