- EUR/GBP advanced snapping three days losing streak.
- Surging COVID-19 cases in the UK kept GBP bulls at bay.
- The Euro benefitted from the weak USD
The EUR/GBP pushed mildly higher in the early European session hitting session highs of 0.8970.
Investors looked beyond Brexit trade deal optimism, as EUR/GBP kicked off the session with a gap higher stalling its recent slide to one-month lows. The Brexit agreement doesn’t apply to the dominant UK services sector – which kept GBP bulls on the side lines.
Record levels of COVID-19 infection in the UK and a warning of tighter lockdown restrictions from the British Prime Minister Boris Johnson also dragged on demand for the Pound.
The Euro continued benefiting from softer tone surrounding the US Dollar, helping to lift EUR/GBP. Still, the move lacked any strong follow-through.
Looking ahead the final version of Manufacturing PMI prints from the Eurozone and the UK is due. Covid developments will also be in focus.