EUR/GBP regains 0.8800 and above on Draghi

The renewed bid tone around the shared currency is helping EUR/GBP to move further north of the 0.8800 handle, or fresh tops.

EUR/GBP in 3-day tops

The European cross gathered unexpected traction today after hawkish comments by Mario Draghi at the ECB Forum boosted the demand for the single currency.

Draghi gave an upbeat assessment of the economy in the region, while he hinted at the likeliness that the central bank could change the policy to keep the stance unchanged instead of tightening.

Traders reacted positively following Draghi’s comments, lifting the cross to challenge 4-day tops in the 0.8830 area.

Looking ahead, the BoE will publish its financial stability report later in the European morning followed by the press conference by Governor M.Carney. In the data space, CBI’s trends survey is only due.

EUR/GBP key levels

The cross is now up 0.40% at 0.8825 facing the next hurdle at 0.8848 (high Jun.21) seconded by 0.8865 (2017 high Jun.9) and finally 0.9055 (high Nov.2 2016). On the other hand, a drop below 0.8765 (20-day sma) would aim for 0.8760 (low Jun.23) and then 0.8715 (low Jun.16).