EUR/GBP firmer albeit below 0.8600

The softer tone in the Sterling is promoting EUR/GBP to remain on the positive territory on Friday, although still unable to break above the 0.8600 handle.

EUR/GBP looks to PMIs

The European cross is extending its sideline pattern so far this week, gyrating around 0.8600 amidst a renewed offered bias in the risk-associated space, as market participants seem to have already digested the recent message from the FOMC meeting.

Later in the session, Markit’s advanced manufacturing and services PMIs for the current month will be the salient events in Euroland. Furthermore, ECB’s VP Vitor Constancio will chair a session on ‘Low interest rates and the implications for financial stability’ at the First ESRB Annual Conference.

Comments by BoE’s MPC K.Forbes on Thursday seem to have given extra support to yesterday’s upside in GBP, as she talked down the need for further stimulus in the UK.

EUR/GBP key levels

The cross is now gaining 0.23% at 0.8594 and a breakout of 0.8642 (78.6% Fibo of Aug-Sep drop) would aim for 0.8727 (2016 high Aug.16). On the other hand, the next support lines up at 0.8496 (20-day sma) ahead of 0.8416 (low Sep.13) and finally 0.8329 (low Jun.9).