- EUR/GBP experienced follow-through selling for a second consecutive session
- A delay COVID-19 vaccines rollout continues undermining the Euro.
- Diminishing odds of BoE rate cut buoys the pound pressuring the pair
EUR/GBP slid to an almost nine-month low with bears now looking beyond 0.8800.
Following a brief consolidation in early trade the pair came under pressure owing to a weaker euro. Euro weakness appears to stem from concerns over the slow rollout of COVID-19 vaccines in Europe.
Data wise, the prelim Eurozone GDP revealed that the economy contracted by 0.7% in Q4 better than the 0.9% contraction expected. Although this was a marked slowdown from the 12.5% growth in Q3.
The Pound benefited from a weaker US dollar and diminishing odds of the BoE cutting rates in 2021.
The BoE monetary policy meeting on Thursday will remain in focus. Negative rates talks be eyed cautiously amid concerns over the economic fallout from the third nationwide UK lockdown.. This will likely
A meaningful move below0.8800 could see more bearish traders jump in, potentially sending EUR/GBP to the 0.8765-60 intermediate support before -0.8700 levels.