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We’ve already written extensively about the high stakes for Tuesday’s vote on Theresa May’s Brexit bill (see here, here, and here for more), but with EUR/GBP clocking in as the weakest currency pair on the day, we also wanted to highlight key levels to watch on the second most-traded pound cross.

A week from today we will finally have the “meaningful vote,” when UK’s parliament will decide whether to approve the Brexit deal which Prime Minister Theresa May negotiated with the European Union at the back end of last year.

The euro and pound have both been among the weakest of G10 currencies so far this year, held back by persistent political uncertainties in the UK and Italy, among other places.

This was on the back of official data showing UK wage growth had reached its highest level since the financial crisis in the three months to August.

As my colleague Fawad Razaqzada noted earlier today, the British pound has finally caught a small bid today after selling off sharply through the first three days of the week...

It’s been a quiet start for traditional economic data, with a slight miss in US existing home sales the only headline of note...

The fact it was also more than one whole point above the May reading meant that the pound would react positively to the news.

The EUR/GBP could be on the verge of a breakdown after the European Central Bank’s policy decision on Thursday.

Despite the overall weakness in UK data recently, the BoE is still more likely to hike rates before the ECB ends QE. This makes us fundamentally bearish on the EUR/GBP. Although Brexit-related and political uncertainties remain in the UK, this is offset by the fact that the Eurozone has its own problems to deal with – Italy, for example.

The EUR/GBP took its sweet time but has now finally reverted back to its mean around the 200-day average circa 0.8750

Since the late-August high just above the 0.9300 handle, EUR/GBP has mostly been in a virtual freefall that has been driven in large part by both a European Central Bank that has been vague and hesitant on the prospective tapering of its massive stimulus program, as well as a Bank of England that has been sending hawkish signals on the potential for...

The single currency’s bullish days could be numbered in the event the ECB refuses to announce a plan to taper its QE programme tomorrow. In contrast, if the central bank turns hawkish then we could see some further strength in the euro.