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EUR/GBP back under pressure this morning

If you look at the price action right now on the EUR/USD and the GBP/USD you will see that the pound is attempting to press higher and so far making a better job of it than the EUR/USD. The upshot of that is more downside pressure on the EUR/GBP today. More recently the cross has been trying to rebound back towards 0.8600. However, those attempts yesterday and the day before have fallen foul of the relapse in the EUR/USD so far this week. The very poor German data, released earlier this morning probably has not helped the Euro much either. Hence, the EUR/GBP is pushing close to 0.8550 this morning. That rate equates to a reciprocal rate for GBP/EUR of 1.1695 and the current rebound there looks like it could eventually press closer to the 1.20 handle, given the widening interest rate differentials between the Eurozone and the UK. The fundamental data right now also supports such move, provided it does not change. The EUR/GBP is right now close to session lows, currently trading at 0.8554
 

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