- EUR/GBP above analyses 08960, for the first time since the end of March.
- In The euros, appreciates, in the hope of a UNION of recovery of the funds.
- BoE’s Bailey indices of negative interest rates and the book slides.
The EUR/GBP rebound to 0.8900 lows, Tuesday, was extended Thursday’s US trading session, with the pair reaching prices beyond 0.8960 for the first time in nearly two months. The euro has bounced back up to 0.8920 earlier today, to $ 0.8970 summits so far.
The euro, supported by the EU to finance the project
The euro has been relatively positive, Tuesday, favored by the market, in the hope that the common fund proposal agreed by France and Germany-to help-corona virus-hit members to strengthen their economies. The 500 million euros to finance the project, although weaker than expected, helped ease concerns about the differences between the countries of the EU, boosting hopes about the possibility of a fiscal union.
On the other side, the british pound remains vulnerable to following the comments of the Bank of England Governor, Andrew Bailey, who has left the door open to the adoption of negative interest rates to combat the effects of the corona virus from the computer.
EUR/GBP: heading towardss 0.9060 – Commerzbank
According to Karen Jones, head of a Team of FICC Technical Analysis Research at Commerzbank, ” the EUR/GBP uptrend, still has room to go, “We view the market as having a broad base, and our target is 0.9060. The database must remain valid while the cross continues to trade above the April low at 0.8671.”