EUR/GBP remains pressured near 0.8420 amid risk-on mood
- EUR/GBP trades with caution on Tuesday in the early Asian trading hours.
- German October IFO Survey, dovish ECB, and downbeat data weighs on the euro
- UK Brexit Minister sets December deadline to resolve NI border issue.
EUR/GBP remains subdued on Tuesday in the Asian session. The cross-currency touched the high of 0.8469 in the US session but failed to sustain the momentum. At the time of writing, EUR/GBP is trading at 0.8429, up 0.06% for the day.
The prospect of the shared currency was weighed down by worrisome German headlines. The October IFO Survey showed that the Business climate shranked by more than estimated to 97.7. The assessment of the current situation improved to 100.1, although expectations were sharply down, to 95.4.
In addition to that, the Bundesbank monthly report suggested that the full-year growth in 2021 was likely to be lower than the June forecast of 3.7%, due to persistent supply chain constraints. The projections strengthen the European Central Bank’s (ECB) dovish stance on monetary policy. The ECB Governing Council member and Spanish central bank chief Pablo Hernandez de Cos said recent developments anticipate a significant downward economic outlook revision for 2021 while pointing at the supply-chain issues and rising costs.
It is worth mentioning that, S&P 500 Futures are trading at 4,568, up 0.24% for the day.
On the other hand, the sterling gains were limited, following the UK’s Brexit Minister David Frost concern about delay to finalising UK’s participation in £80bn Horizon Europe scheme, which blew open a fresh Brexit row with Brussels. As per Sky news, the UK Brexit Minister has issued a December deadline for the European Union (EU) to resolve the Northern Ireland Protocol.
As for now, traders are waiting for the European Central Bank (ECB) Lending Survey, and German Gfk Consumer Confidence to gauge market sentiment data.
EUR/GBP additional levels