EUR/GBP flirts with daily highs around 0.9120

• EUR/GBP moves higher to the 0.9120/30 band on Thursday.
• Fresh Brexit woes weighs on the sterling and lifts the cross
• EMU’s Consumer Confidence will be published later in the session.

EUR/GBP is extending the weekly upside and is trading in the upper end of the range around 0.9120/30.

EUR/GBP up on GBP-selling

The now softer tone in the British pound - as opposed to the unremitting buying pressure in the European currency – is pushing EUR/GBP to levels closer to weekly peaks near 0.9140.

In fact, fresh Brexit concerns returned to the quid in the second half of the week after EU’s negotiator M.Barnier stressed that there still are risks of a no-deal scenario, at the same time hinting at the idea that positions from both countries remains quite far away at the moment. The latter view was confirmed by UK’s Frost, who reiterated that there is persist areas of disagreement.

In the meantime, the recent strength in the pound was in response to broad-based dollar weakness, while a dovish BoE, the impact of the pandemic on the economy and concerns over Brexit are expected to keep the currency under pressure from the domestic side.

In the docket, the European Commission will publish the preliminary gauge of July’s Consumer Confidence in the euro bloc. On Friday, UK’s Retail Sales and flash PMIs are due along with flash prints of manufacturing and services PMIs in Euroland.

EUR/GBP key levels

The cross is gaining 0.42% at 0.9122 and faces the next hurdle at 0.9175 (monthly high Jun.21) followed by 0.9324 (2019 high Aug.12) and finally 0.9499 (2020 high Mar.19). On the downside, a breach of 0.9001 (weekly low Jul.21) would expose 0.8977 (55-day SMA) and then 0.8937 (monthly low Jul.10).