All trading involves risk. Losses can exceed deposits.

Political upheaval pressures euro

The EUR/GBP trade has been stuck in a tight range, lacking the momentum or indeed any real confidence in the single currency to break above the £0.8600 level.

All trading involves risk. Losses can exceed deposits.

The better-than-expected UK services PMI, in simpatico with the renewed political crisis in Portugal which has driven the country’s ten-year bond yield rise to 7.6% and fears that Greece will not receive the next tranche of its bailout, is adding pressure to the euro.

With the short-term RSI oversold, we could see a bounce back to £0.8510 before a more protracted southward move.

Right now, the £0.8490 level is providing a degree of support for EUR/GBP, with £0.8470 the key level to watch. A break and close below this will open up the way for a test of the £0.8400 levels and the 200-day moving average.

EUR/GBP (DFB) Spot FX chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts