- Summary:
- GBP was lower with the pound finding buyers after it emerged that Brexit talks will likely continue into November ahead of an EU summit.
The EURGBP was lower with the pound finding buyers after it emerged that Brexit talks will likely continue into November. French Minister Clément Beaune said on Sunday: “There needs to be an agreement in the coming weeks. That means around the beginning of November”.
U.K. Prime Minister Boris Johnson had previously set a deadline of October 15th as a date they would walk away but it looks like a continued stalemate could see that extended. The threat to walk away from talks had put real pressure on the pound. The EU council will meet on Thursday in Brussels with Brexit among the topics being discussed.
Tomorrow will be a key day in the economic calendar for the pair with U.K. unemployment and German inflation and ZEW data released. The U.K. economy is expected to see a loss of -24k jobs, which is double the figure of last month and comes on the heels of some high-profile business failures, such as the Cineworld chain.
German inflation is expected to fall into negative territory with a print of -0.2% after last month’s 0% figure. ECB officials have been watching deflation in the Eurozone closely and the number could impact the Euro. The German ZEW sentiment survey of economists and analysts is expected to come in lower at 74 compared to last month’s 77.4.
EURGBP Technical Outlook
After falling back into the range between 0.9150 and 0.8940 the EURGBP is testing support again at the 0.9050 level. A move lower will test the lower end of the range with possible further lows at the uptrend support line of 0.8850. We can also look for a daily support that would see further highs and a push to the 0.9150 level. The Investing Cube team is currently available to assist all levels of traders with a Forex Trading Course or one-to-one coaching.
EURGBP Daily Chart
