Two trades to watch: DAX, EUR/GBP
Fiona Cincotta November 2, 2021 8:12 AM
DAX looks to earnings, manufacturing PMIs. EUR/GBP approaches 0.85 on Brexit developments, EZ manufacturing PMI due.
EUR/GBP approaches 0.85 on Brexit developments, EZ manufacturing PMIs
The Pound was the worst performing G10 currency in the previous session after post Brexit fishing tensions escalated between Britain and France.
Overnight the news has been more encouraging with France saying that it will hold off with fishing sanctions on the UK for now. However, the spat has served to remind pound traders that Brexit is far from resolved.
Eurozone manufacturing PMIs will be in focus for the euro. The common currency is also finding some support from the softer US Dollar.
Where next for EUR/GBP?
EUR/GBP is extending its rebound from 0.84 at the end of October. The bullish crossover on the MACD is keeping buyers hopeful of further gains.
Bulls need to break meaningfully above resistance at 0.85 in order to expose the 50 sma 0.8525 and for bulls to gain traction.
On the flip side, failure to close above 0.85 could see the pair move back towards 0.8475 last week’s high and 0.8420 support.
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