The EUR/GBP about to push to 0.9100 due to political development
Today, we'll be looking at a currently very political currency pair: the
EURGBP
. Over the last few days, uncertainties surrounding Brexit talks and obvious distrust in both prime minister May, and the opposing Labour Party, resulted in the EUR/GBP moving upwards for 14 trading days in a row after finding support at the current yearly lows around 0.8470.
Given how weak the Pound Sterling is currently, one clear profiteer is the Euro - a currency which will probably see some stronger headwinds in the near future, resulting from the potential disaster for established European parties in the upcoming election next Sunday.
The UK is witnessing the performance of Nigel Farage's Brexit party, which looks like they come out as the strongest UK party in the EU elections, but other nations see the performance of other Euro sceptical parties like the Lega under Salvini in Italy, or the National Front in France under Le Pen, causing headaches among Euro bulls.
Trading-wise, the push higher in the EUR/GBP and test of the region around 0.8840/50 is very interesting: a break higher could level the path for further gains, and activates the region around the current yearly highs respectively the 2018 highs around 0.9100.
This would be especially true if, after the developments in Austria over the last days where right-wing FPOe took a hit due to a corruption scandal stemming from its leader and vice-chancellor HC Strache, a subdued election result for the right-wing parties in Europe could trigger a short-squeeze in the Euro and push the EUR/GBP even further.
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Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 85% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
EURGBP
. Over the last few days, uncertainties surrounding Brexit talks and obvious distrust in both prime minister May, and the opposing Labour Party, resulted in the EUR/GBP moving upwards for 14 trading days in a row after finding support at the current yearly lows around 0.8470. Given how weak the Pound Sterling is currently, one clear profiteer is the Euro - a currency which will probably see some stronger headwinds in the near future, resulting from the potential disaster for established European parties in the upcoming election next Sunday.
The UK is witnessing the performance of Nigel Farage's Brexit party, which looks like they come out as the strongest UK party in the EU elections, but other nations see the performance of other Euro sceptical parties like the Lega under Salvini in Italy, or the National Front in France under Le Pen, causing headaches among Euro bulls.
Trading-wise, the push higher in the EUR/GBP and test of the region around 0.8840/50 is very interesting: a break higher could level the path for further gains, and activates the region around the current yearly highs respectively the 2018 highs around 0.9100.
This would be especially true if, after the developments in Austria over the last days where right-wing FPOe took a hit due to a corruption scandal stemming from its leader and vice-chancellor HC Strache, a subdued election result for the right-wing parties in Europe could trigger a short-squeeze in the Euro and push the EUR/GBP even further.
Ready to start trading the live markets? Then open a free account with Admiral Markets - 8,000+ instruments to choose from, some of the market's tightest typical spreads, and the world's #1 multi-asset trading platform. admiralmarkets.com/start-trading/
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 85% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.