EUR/GBP bulls eyeing a move beyond 0.9100 mark, focus remains on EU Summit
- A strong pickup in the common currency assisted EUR/GBP to catch some fresh bids on Friday.
- Optimism over a deal on the EU recovery fund continued underpinning the shared currency.
- The final Eurozone CPI matched preliminary estimates and remained supportive of the move.
The EUR/GBP cross continued scaling higher through the first half of the trading action on Friday and was last seen trading near session tops, just below the 0.9100 mark.
Following the previous day's modest intraday pullback, the cross managed to regain some positive traction on the last trading day of the week. The positive momentum was fueled by the shared currency's relative outperformance against its British counterpart amid the optimism over a deal on the EU recovery fund.
Investors remain convinced that the European leaders will make progress in agreeing on the proposed €750 billion coronavirus recovery fund, aimed at aiding the region’s worst-hit economies. The European Council president, Charles Michel also showed confidence and said that an agreement is possible if there is a political will.
Adding to this, the Greek Prime Minister (PM) Kyriakos Mitsotakis said that there was absolutely no reason why the deal shouldn’t get done. Separately, French PM Emmanuel Macron was cautious on reaching a deal, while Dutch PM Mark Rutte said that there are less than 50% chances of reaching a deal at the upcoming EU summit.
Meanwhile, the final Eurozone CPI figures for June matched preliminary estimates and remained supportive of the strong bid tone surrounding the euro. On the other hand, the sterling struggled for a firm intraday direction and did little to influence the EUR/GBP cross.
It will now be interesting to see if bulls are able to maintain their dominant position or the EUR/GBP cross once again meets with some fresh supply at higher levels. The key focus will remain on headlines coming out from the EU summit, which will continue to play a key role in determining the pair's near-term trajectory.
Technical levels to watch