EUR/GBP sinks to daily lows on Draghi

The increasing weakness around the single currency has pushed EUR/GBP to the area of session lows near 0.8520 on Thursday.

EUR/GBP weaker on dovish Draghi

The European cross met a wave of selling pressure after ECB President M.Draghi has once again noted that inflation pressures remain weak while a reassessment of the current monetary policy stance is not warranted at this stage.

The dovish message from Draghi impacted on EUR, forcing EUR/GBP to rapidly abandon the vicinity of  0.8560 to re-focus on the key support at 0.8500 the figure, or fresh 3-day lows.

Later in the session, ECB members P.Praet and V.Constancio are also due to speak ahead of the release of the ECB minutes of the March meeting.

EUR/GBP key levels

The cross is now losing 0.30% at 0.8516 and a breach of 0.8488 (low Apr.3) would expose 0.8480 (low Mar.31) and finally 0.8417 (low Feb.23). On the other hand, the next hurdle lines up at 0.8556 (high Apr.6) followed by 0.8585 (55-day sma) and then 0.8592 (200-day sma).