EUR/GBP firmer, nearing 0.7900

The increasing offered tone around the sterling is prompting EUR/GBP to trade closer to the 0.7900 handle today.

EUR/GBP higher on GBP-selling, ‘Brexit’

The selling mood remains intact around the British pound this week, gathering further traction since Monday’s comments by London mayor B.Johnson and also supported by slowly increasing bets favouring the ‘No’ vote in the June referendum.

Absent releases in Euroland, the only event in the UK today will be the speech by J.Cunliffe, while ‘Brexit’ news will remain the almost exclusive catalyst for the (still) European cross in the near term.

EUR/GBP key levels

The European cross is now up 0.04% at 0.7864 facing the next hurdle at 0.7901 (high Feb11) followed by 0.8007 (high Dec.16 2014) and then 0.8041 (high Nov.27 2014). On the other hand, a breach of 0.7728 (20-day sma) would aim for 0.7694 (2-month uptrend) and finally 0.7523 (low Feb.3).

EURUSD catches its breath – UniCredit

Research Team at UniCredit, suggests that some weakening in leading indicators across Europe may lead to a continuation of the recent correction in EUR-USD over the coming days.
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JPY: CPI likely to shrink by 0.1% - Wells Fargo

Research Team at Wells Fargo, expects the Japanese CPI to print -0.1% tomorrow as compared to the 0.2% in its previous print and below the market consensus of 0.0% (Year-over-Year).
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