EUR/GBP - Above 0.85 & at 5-day high

The pound’s drop in Asia on Scottish referendum talk pushed the EUR/GBP cross to a five-day high of 0.8519 levels.

EUR could rise as Le Pen is losing a poll

According to polls, Emmanuel Macron is on course to beat Marine Le Pen in French presidential election. A poll by Odoxa/Dentsu-Consulting showed Mr Macron would beat Ms Le Pen in the run-off with 61% of the vote. Another poll by Figaro/LCI showed Mr. Macron winning the runoff by 58%.

Franco-German yield spread could narrow on Le Pen’s loss in the polls. Thus, the bid tone around EUR could gather pace in early Europe.

Meanwhile, another wave of selling in the British Pound in early Europe and early US session could be seen as well. 

EUR/GBP Technical Levels

The 50-DMA at 0.8545 could offer resistance, which, if breached would open doors for 0.0.8592 (Feb 17 high). On the lower side, breakdown of support at 0.8489 (10-DMA) could yield a pullback to 0.8461 (session low).