EUR/GBP flirting with 0.8400 ahead of PMI

EUR/GBP is testing the boundaries of the key barrier at 0.8400 the figure on Tuesday amidst increasing risk aversion in the global markets.

EUR/GBP attention to PMI

The European cross is posting its second consecutive session with gains so far, trading at shouting distance from 2016 highs in levels just above the 0.8400 handle.

A softer tone in both the Sterling and the single currency keeps sustaining the up move in the cross ahead of the key Services PMI in the UK economy. Market consensus expects the print to have eased to 52.7 during June vs. May’s 53.5.

Further releases in Euroland will see Services PMIs and EMU’s Retail Sales for the month of May.

EUR/GBP key levels

The cross is now up 0.12% at 0.8401 and a breakout of 0.8407 (2016 high Jul.1) would expose 0.8467 (monthly high Dec.17 2013). On the other hand, the immediate support aligns at 0.8202 (low Jun.29) followed by 0.8046 (20-day sma) and then 0.7882 (55-day sma).