EUR/GBP hits its lowest level since 8th May 2019

• Ahead of the UK retail sales data EUR/GBP reached a low of 0.85509.
• UK retail sales missed expectations of 0.2% to come in at -0.1% for October.

Fundamental Backdrop

Ahead of the UK retail sales data, there was some GBP strength entering the market.

GBP/USD spiked higher to 1.2867 and EUR/GBP hit a low of 0.85493.

Despite the miss on the retail sales number, the main driver of GBP price action is still politics and Brexit of course.

Today the talk amongst UK press focuses on which parties are fielding candidates against each other in the Remain and Brexiteer camp.

This has been a hot topic since the Brexit Party's Nigel Farage stated he would not field candidates against Conservatives who won seats in the last election.

Daily Chart

The low on 8th May was 0.85608 and today the price hit 0.85509.

The daily chart below shows the collapse of EUR/GBP over the last two months.

The next major support holds at 0.84912 and below that 0.84722 on the daily timeframe.