EUR/GBP slips to lows, testing 0.7720

By FXStreet FXStreet (Edinburgh) – The risk-on environment is removing an important tailwind for the single currency today, sending EUR/GBP to the lower bound of the range near 0.7720.

EUR/GBP focus on risk trends, Draghi

Asian markets have greeted China’s return with an upbeat tone on Monday, boosted by the Nikkei advancing more than 7% on talks of further stimulus by the BoJ. As risk appetite is on the rise, so is the sentiment for the sterling, collaborating with the daily correction of the cross ahead of the European open.

Data wise in Euroland, President M.Draghi will give a speech at the European Parliament in Brussels, while a gauge of UK’s house price inflation tracked by the Rightmove index rose 2.9% MoM for the current month.

EUR/GBP key levels

The European cross is now losing 0.38% at 0.7725 and a breach of 0.7670 (20-day sma) would aim for 0.7620 (2-month uptrend) and finally 0.7523 (low Feb.3). On the flip side, the next up barrier aligns at 0.7901 (high Feb11) followed by 0.8007 (high Dec.16 2014) and then 0.8041 (high Nov.27 2014).
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Source:: FX Street