EUR/GBP drops sharply to 0.9025, 3-week low as Pound jumps on Merkel’s comments.
- Pound jumps across the board following comments from German Chancellor.
- EUR/GBP breaks range and tumbles toward 0.9000.
The Pound rose sharply and pushed EUR/GBP sharply to the downside. The pair is having the worst performance in months, extending the correction from August highs.
Brexit deal hopes boost GBP
Angela Merkel said that a solution to the Irish border could be found before the October 31 deadline. Her comments triggered some optimism to avoid a hard Brexit. UK Prime Minister Boris Johnson also meet French President Emmanuel Macron. According to Macron, Johnson must present concrete proposals for Brexit.
Today’s meetings and comments triggered a rally in the Pound that is the best performer in the market. EUR/GBP was hovering around 0.9120 and tumbled to 0.9027 in a few minutes, reaching the lowest since July 29.
As of writing trades at 0.9045, down 90 pips for the day. It is consolidating the breakout of a trading range between 0.9095 and 0.9170 that had been in place since last Friday.
The Euro continues with the correction that started two weeks ago from the multi-year high it reached at 0.9323. Since then it had fallen almost 300 pips, posting losses in six out of the last eight trading days.