EUR/GBP losing momentum below 0.8600

The renewed selling pressure around the single currency has prompted EUR/GBP to briefly test sub-0.8600 levels, hovering over that area for the time being.

EUR/GBP attention to Draghi, risk trends

The European cross is retreating for the second consecutive session so far after being rejected from recent tops above the 0.8700 handle seen on Monday.

The offered tone around the common currency in combination with the resilience showed by its ex-European peer has encouraged sellers to step in and drive the cross lower towards the 0.8600 limestone and below.

In the meantime, risk trends appear as the almost exclusive drivers behind the softer tone in the risk-associated assets, all amidst a pick up in the demand for the US dollar.

Ahead in the session, the only event of note will be the Exchange of Views by President Draghi on ‘Current developments in the euro area’ in Berlin, while Fed speakers scheduled for later in the day are poised to grab a lot of attention as well.

EUR/GBP key levels

The cross is now losing 0.24% at 0.8591 and a breakdown of 0.8555 (low Sep.23) would aim for 0.8515 (20-day sma) and finally 0.8464 (low Sep.15). On the other hand, the next up barrier is located at 0.8717 (high Sep.26) ahead of 0.8727 (2016 high Aug.16).