- Several factors helped EUR/GBP pick up from multi-month lows.
- Brexit uncertainties, weaker UK data dragged on demand for the British pound.
- The Euro benefitted from easing USD demand .
A weaker British pound aided EUR/GBP to a two-day high at 0.8940 in the European session on Thursday.
The pair added to Wednesday’s rebound from 0.8860 a five-month low. The Pound came under pressure as investors awaited Brexit updates. Weaker-than-expected UK GDP data added to the selling bias..
The UK economy expanded by 1.1% in September and 15.5% during the third quarter of 2020, missing forecasts.UK Industrial and Manufacturing Production figures for September were also downbeat.
Meanwhile, the Euro picked up on the back of a mildly weaker USD, helping EUR/GBP advance. Even so, the tick higher lacked any strong follow-through and aggressively bullish traders should be cautious amid expectations for additional easing by the ECB.
ECB President Christine Lagarde on Wednesday said that the PEPP and TLTROs have effective tools and will therefore remain the main tools for adjusting the central bank’s monetary policy.