Portugal puts pressure on EUR/GBP

EUR/GBP has fallen almost 1% in the past two days, and today we have seen the euro slide even further, testing those intraday support levels around 0.8615.

Rumours of a French downgrade, along with Portuguese 10-year bond yields marching up to 7.9% following renewed political upheaval, are threatening to see that support for the currency cross breached.

German chancellor Angela Merkel’s remarks over the newswires that Europe is on the right path seem somewhat ironic at the moment.

Some of the weakness in the euro can be attributed to the poor earnings from economic bellwether UPS, which has sent some capital flow into the safe-haven of the dollar.

Spot FX EUR/GBP chart

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