EUR/GBP dips to lows near 0.8530 on Autumn Statement

The Sterling is trading on a better mood following the release of the Autumn Statement in the UK, prompting EUR/GBP to retreat to lows near 0.8540.

EUR/GBP weaker on Hammond

The European cross is extending its negative performance for the fourth week in a row today after breaking below the sideline pattern around 0.9000 the figure seen during October. Dips, however, appear contained around the 0.8500 neighbourhood for the time being.

GBP gained further traction after the publication of the Autumn Statement, where Chancellor P.Hammond defended the BoE actions following the Brexit vote and prioritized investments in infrastructure and innovation aimed to boost productivity.

Previously in the euro area, mixed advanced manufacturing and services PMIs for the current month failed to spark a reaction in EUR, which remains isolated following USD dynamics.

EUR/GBP key levels

The cross is now losing 0.22% at 0.8533 facing the immediate support at 0.8485 (low Nov.21) followed by 0.8329 (low Sep.6) and finally 0.8257 (200-day sma). On the other hand, a breakout of 0.8632 (100-day sma) would expose 0.8710 (high Nov.15) and then 0.8762 (20-day sma).

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