- EUR/GBP saw buyers jump in at 0.9050 support.
- Brexit uncertainties keep GBP bulls cautious
- Euro is well supported for now
The EUR/GBP maintained gains in the -European session. The pair trades around the top of daily range (0.9080-85)
Support is seen at 0.9050s, buyers jumped in helping the pair recover losses from last week. Brexit-related uncertainties is the sole cause of the pound’s underperformance.
UK Prime Minister Boris Johnson and the European Commission President Ursula von der Leyen agreed in a phone call on Saturday to discuss Brexit. The GBP buyers still remained cautious and even shrugged the upwardly revised UK Services PMI.
A weaker US Dollar is boosting the Euro, amid upbeat news surrounding the health of US President Trump’s after he contracted covid last week. Equity markets are also trading higher.
The euro saw additional support from the Eurozone Services PMI prints and not as bad as forecast Sentix Investor Confidence Index, printing at -8.3 for October versus -9.5 expected and -8.0 previous.
Can the pair pick up momentum or will concerns over the economic recovery in Europe amid the second wave of coronavirus infections weigh on demand? It could be prudent to wait for a meaningful move higher.
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