EUR/GBP extends decline and falls to test 0.8900

EUR/GBP is falling on Wednesday for the second day in a row. So far it has been able to hold above 0.8900 but still remains under pressure, moving on a corrective mode, retreating from multi-year highs that reached almost two weeks ago during the Pound’s flash crash. 

The pair bottomed recently at 0.8900, the lowest since October 7 and then rebounded modestly to the upside, it was trading around 0.8917/19, down 0.13% for the day. 

Weak EUR, stronger GBP 

The pair earlier rose toward the 0.8950 but then it reversed to the downside, following the release of the UK employment report that showed better-than-expected numbers. The pound gained momentum in the market and then it bottomed at 0.8900 at the moment when EUR/USD hit fresh weekly lows. 

The euro is among the worst performers in the currency market ahead of tomorrow’s European Central Bank meeting. In the UK, on Thursday there will be more data with the retail sales report.