EUR/GBP clinches highs near 0.8670

The now softer tone around the Sterling is allowing EUR/GBP to advance to fresh daily highs in the 0.8670 area.

EUR/GBP focus on data, attacks

GBP came under further pressure following the Manchester blasts and the evacuation of Victoria Coach Station, sending the European cross to the highest level since late April in the vicinity of 0.8670.

In the meantime, EUR stays largely underpinned by the persistent selling bias around the greenback despite today’s mild recovery, while speculative positioning is also reinforcing its current upbeat sentiment.

In the data space, UK’s Public Sector figures are due later seconded by Inflation Report Hearings and CBI’s Distributive Trade Survey. This side of the Channel, French advanced manufacturing PMI is expected to come in at 54 in May, missing initial estimates, while German and EMU’s PMIs are next on tap.

EUR/GBP key levels

The cross is now up 0.24% at 0.8664 and a breakout of 0.8738 (high Mar 29) would aim for 0.8788 (high Mar.14) and the 0.8860 (2017 high Jan.16). On the flip side, the immediate support aligns at 0.8597 (200-day sma) seconded by 0.8549 (55-day sma) and then 0.8521 (high May 18).