EUR/GBP comes under pressure near 0.8820 post-UK Court ruling
- EUR/GBP resumes the downside and returns to the 0.8820 region.
- Weekly support so far emerged in the 0.88 neighbourhood.
- UK Court ruled that Parliament’s suspension was unlawful.
EUR/GBP is now coming under further selling pressure, although it manages well to keep business above the 0.88 handle for the time being.
EUR/GBP weaker on UK Court ruling
The Sterling picked up extra pace on Tuesday and forced the European cross to return to the negative territory after the UK Supreme Court ruled that PM Boris Johnson acted unlawfully when he suspended the Parliament earlier in the month.
Furthermore, the vote was unanimous and states that Johnson’s decision to suspend Parliament prevents it from carry out its constitutional functions without reasonable justification.
In the meantime, there is no news around Brexit limbo while on the UK docket, the Public Sector Net Borrowing rose to £5.77 billion for the month of August. The budget deficit, however, was lower than expected (£6.60 billion). On this side of the Channel the German Business Climate tracked by the IFO survey posted a little improvement for the month of September, prompting the single currency to regain some lost shine.
EUR/GBP key levels
The cross is losing 0.02% at 0.8836 and a breach of 0.8785 (monthly low Sep.20) would expose 0.8667 (78.6% Fibo of the May-August rally) and finally 0.8488 (monthly low May 6). On the upside, the next hurdle lies up at 0.8906 (50% Fibo of the May-August rally) seconded by 0.8955 (100-day SMA) and then 0.9036 (55-day SMA).