Firmer euro drives EUR/GBP beyond 0.7300

FXStreet (Mumbai) - Broad based euro strength bolstered by rising safe-haven demand drove the EUR/GPB cross higher beyond 0.7300 levels during the European session. While lowest oil prices since 2009 threaten the UK's mining and energy sector keeping the pound largely undermined.

EUR/GBP at 2-month highs

Currently, the EUR/GBP pair trades 0.75% higher at 0.7310, having faced rejection at 0.7338 in early trades. The EUR/GBP cross keeps its bid tone intact, although recedes from fresh two-month highs, as the shared currency continues to hammer the British pound amid risk-off moods spurred by China stocks crash and tumbling oil prices.

On the other hand, GBP/USD trades with moderate gains as sterling remains vulnerable to falling oil prices as low energy prices hurts the UK's mining and energy sector big time.

The cross has gained more than 3 big figures in the last days, which is very unusual for this otherwise calm cross.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.7338 (Today’s High) levels and above which it could extend gains 0.7367 (June 10 High) levels. To the downside immediate support might be located at 0.7257 (Today’s Low) below that at 0.7200.

Gold stuck below $ 1160, uninspired by China-led risk-off

The yellow metal appears to have lost its shining status as a safe-haven asset on Monday as weak Chinese economic data and traders fleeing equities across all of Asia and Europe failed to boost the safe-haven bids for gold.
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